Plastic notes will soon be in your pockets! RBI’s new preparation, know what is going to change

The Reserve Bank of India (RBI) is preparing to take a big step towards modernizing the currency system in the country. According to the report of NDTV, the Central Bank may soon start a pilot project of polymer i.e. plastic bank notes. In the initial phase, small value notes will be tested, after which further strategy will be decided based on its results.

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Polymer bank notes are not made on ordinary paper but on a special type of thin and flexible plastic material. These are almost similar to the existing notes in appearance and use but are considered stronger and more durable than normal paper notes. They are less likely to get damaged quickly even if they are repeatedly folded or get wet.

Will the existing notes be discontinued?

This is not going to happen at the moment. The introduction of plastic notes does not mean that paper notes will immediately disappear from the market. Both types of currency will be in circulation together. RBI will first test it on a limited level and only then a decision will be taken on a larger level. According to the report, the pilot project will be started with ₹10 and ₹20 notes. The reason for this is that these notes are used the most and also get spoiled quickly. If the test is successful then in the coming time notes of other denominations can also be converted into polymer.

According to the information, if the results of the trial are positive, RBI can take steps towards issuing polymer notes on a large scale from the year 2027. However, the final decision in this regard will be taken only after the completion of the test.

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Polymer currency is already being used in many countries of the world. These notes are considered more secure, durable and more effective in curbing fake notes. Now India is also preparing to move in this direction.