To curve the spreading menace of counterfeit currency notes, the Reserve Bank of India is planning to introduce plastic currency with the paper notes and initially to check its success, RBI is introducing pilot project in few cities. RBI Deputy Governor H R Khan believes that plastic notes are difficult to counterfeit and initially it will launch pilot project at Shimla, Jaipur, Bhubaneswar and couple of more cities.
Under the pilot project, notes of Rs 10 denomination would be distributed through the central bank’s five regional offices. The proposed shift to plastic currency notes, instead of the usual paper notes, is primarily aimed at checking the counterfeiting, as also high cost associated with printing of paper currency, as they need early replacement due to soiling and mutilation.
These notes would have an average life span of five years, compared with one year for the paper notes. Moreover, these notes are also cleaner. In the pilot project bank will also look into the environmental impact of these plastic notes.
India will not be a first country to go with plastic notes as it was first introduced in Australia. Other countries to have introduced plastic notes include New Zealand, Papua New Guinea, Romania, Bermuda, Brunei and Vietnam.
