Centre to try out plastic currency

The government would conduct field trials of plastic banknotes at five locations, Minister of State for Finance Arjun Meghwal said in a written reply to the Lok Sabha on Friday. Such notes were expected to last longer than cotton substrate-based ones, Meghwal said.

The government will conduct field trial with plastic banknotes at five locations of the country, Minister of State for Finance Arjun Meghwal said in a written reply to the Lok Sabha on Friday.

The reason for such a move is that plastic banknotes are expected to last longer than cotton substrate-based notes, Meghwal said.

“It has been decided to conduct a field trial with plastic banknotes at five locations of the country. Approval for procurement of plastic substrate and printing of banknotes of ~10 denomination on plastic banknote substrates has been conveyed to the Reserve Bank of India (RBI),” Meghwal said according to an official statement by the finance ministry.

“Over the years, central banks across the world have been exploring different solutions for extending the lifecycle of banknotes. These include introduction of plastic banknotes and other developments in banknote substrates for enhancing durability including use of natural fibre blends, varnish of banknotes etc,” the statement said.

Such a move comes even as banks and the RBI deal with multiple complaints of fake ~500 and ~2,000 notes being dispensed by ATMs. There have also been cases of notes being dispensed without requisite features.