RBI Plans Plastic Currency Trial After 15 Years

The Reserve Bank of India (RBI) is planning to trial plastic currency notes after a 15-year gap.

The tender for 3.4 crore polymer sheets was issued by BRBNMPL, indicating a serious intent this time.

Plastic notes are used in over 50 countries and are known for their durability, which can last two to six times longer than paper notes.

This longevity reduces the need for frequent production and disposal, leading to cost savings and environmental benefits.

The RBI has spent a significant amount on printing paper notes over the years, and plastic notes could help reduce these costs.

Additionally, plastic notes are more secure and harder to counterfeit.

However, there are concerns about the dependency on foreign suppliers for raw materials.

Despite the rise in digital payments, cash demand in India remains strong, making the trial of plastic notes relevant.

The RBI has existing facilities for producing paper and ink domestically, and a gradual shift to plastic notes would require further investment.