Top News

Polymer Currency Notes in India: The Narendra Modi government at the Center is preparing to introduce plastic notes in the country soon. Minister of State for Finance Pankaj Chaudhary told the Lok Sabha that field trials of polymer (plastic) notes of Rs 10 and Rs 20 have been approved. Under this, 200 crore notes worth about Rs 3,000 crore will be launched in the market.

The Reserve Bank of India (RBI) believes that this will make the notes more durable, secure and usable for a long time. If the trial is successful then in future notes of other denominations can also be printed in polymer. Let us tell you why the government suddenly decided to issue plastic notes in the country? What does this have to do with Australia? And what are its advantages and disadvantages?

When was plastic note issued for the first time

Plastic notes were introduced in Australia. Just a few months after the new currency was issued in 1966, fake 10 dollar notes reached the market in large numbers. The surprising thing was that this work was not done by any big gang, but by a photographer, an artist, a tailor and a shopkeeper together. After this incident, the Central Bank of Australia asked scientists to create such a note which would be very difficult to copy. After nearly 20 years of research, the world’s first polymer note was issued in 1988.

From which plastic are these notes made?

Polymer notes are not made from ordinary plastic. They are manufactured using ‘bi-axially oriented polypropylene’ A special polymer called (BOPP) is used. It is prepared from petroleum and natural gas. It is considered quite strong, flexible and durable. This is the reason why polymer notes do not tear easily and retain their shape for a long time.

Polymer notes are made from bi-axially oriented polypropylene (Source- Social Media)

The plan to introduce plastic notes in India is not new. RBI first proposed it in 2009. After this, in 2012, the then government had approved the trial of polymer notes of Rs 10. Their testing was planned according to different weather conditions in cities like Kochi, Mysore, Jaipur, Bhubaneswar and Shimla. However, the project could not move forward due to the 2016 demonetization and the need for replacement of ATM machines. Now the government has decided to start it again.

Will be more durable than paper notes

According to RBI, polymer notes can last 2 to 6 times longer than paper notes. These do not get easily damaged by water, moisture, oil and dust. There is less chance of them bursting even after repeated folding. When they are no longer completely usable, they can be recycled and used to make new products or new notes.

Polymer notes will be more durable than paper notes (AI generated image)

The initial cost of printing polymer notes is higher than that of paper notes. According to experts, their printing cost can be higher by about 30 to 60 percent. But it lasts longer than paper notes, due to which there is less need to print new notes again and again. This is the reason why the total cost of the government reduces in the long run. Countries like Australia have recorded huge savings over the years by adopting polymer notes.

Effective in stopping fake notes

The biggest advantage of plastic notes is their security. Transparent windows, special ink, micro printing and many modern security features can be added to these. To copy them, cutting-edge technology and huge investment is required. This is the reason why countries which have adopted polymer notes have recorded a significant reduction in the cases of fake notes.

Challenges facing the government regarding polymer notes

Although polymer notes have many advantages, they will not be easy to implement fully. The biggest challenge is to update the ATMs, note counting machines and cash handling systems to suit the new notes. This will require large scale investment. Apart from this, experts say that over time, criminals may also try to make fake polymer notes using new technologies such as 3D printing and artificial intelligence.

At present, field trials of only polymer notes of Rs 10 and Rs 20 will be conducted in India. During this time their strength, safety and practical use will be assessed. If the results are satisfactory, in future notes of Rs 50, 100 and 500 can also be issued in polymer. However, the process of replacing paper notes with plastic notes across the country may take several years to complete.

There may be a big change in Indian currency

The introduction of plastic notes can prove to be a major change in the Indian currency system. This will increase the lifespan of notes, strengthen control over fake currency and may also reduce printing costs in the long run. However, its success will depend on how successful the trial is and how quickly the country’s banking and ATM infrastructure can prepare for this change.