A big update has come out regarding plastic currency in India. The Reserve Bank of India (RBI) has taken a big step towards introducing plastic i.e. polymer notes. RBI's note printing company Bharatiya Reserve Bank Note Printing Private Limited (BRBNMPL) has invited applications from companies across the world. These companies will have to make such polymer sheets which already have modern safety features. Indian notes can be printed on these sheets in future.
According to media reports, if this scheme is implemented, India will use plastic notes instead of paper for the first time. However, RBI has not yet clarified which notes will come in plastic first and when will they be released in the market.
RBI has also laid down strict rules related to national security in this tender. The applying companies will have to obtain security clearance from the Government of India. Besides, they will also have to ensure that the material of the notes made for India does not come from China or Pakistan. Apart from this, this special material prepared for India will not be sold to any third country. Not only this, only those companies will be able to apply, which have supplied the material of polymer notes to the central bank or note printing agency of any country for at least three years.
RBI will first conduct field trials of these polymer notes. In the initial phase, about 68,000 reams of polymer sheets are required. Notes of two different denominations can be printed in these. If the trial is successful then purchases will be made on a large scale later. This tender has come at a time when RBI Governor Sanjay Malhotra, after reviewing the monetary policy on June 5, had said that the proposal to introduce polymer notes is under consideration, but no final decision has been taken yet. He had said that RBI is studying the advantages and disadvantages of this scheme. At present this scheme is in the initial stage.
Polymer notes are stronger than ordinary paper notes. They do not tear easily, are less damaged by water and dirt and last a long time. This is the reason why there is no need to change them frequently. Apart from this, it is easy to install modern security features on them, which makes it difficult to make fake notes. Polymer notes are already being used in many countries of the world like Australia, Canada, New Zealand and Britain.
