New Delhi: The Government of India has made a big announcement. Now plastic notes of Rs 10 and Rs 20 will be printed. Minister of State for Finance Pankaj Chaudhary has given this information in a written reply to a question in the Lok Sabha.
What did Pankaj Chaudhary tell?
Pankaj Chaudhary said that the Reserve Bank had sent a proposal to print plastic notes of ten and twenty rupees as a pilot project, which has been accepted by the government. This news has also been confirmed by Reserve Bank Governor Sanjay Malhotra.
It is learned that the government has currently given approval to print plastic notes of Rs 100 crore 10 and Rs 100 crore 20. Tender has also been issued for this. The tender can be filled till August 18 but no information has been given as to when the plastic notes will come into circulation.
What will happen to the old notes?
The government has also made it clear that the paper notes of Rs 10 and Rs 20 which are currently in circulation will continue to circulate in the market. They will not be taken back but if the experiment of plastic currency is successful then gradually the use of plastic currency will be increased instead of paper.
Where are plastic notes in circulation?
Plastic notes are currently in circulation in about two dozen countries like Australia, New Zealand, Canada, Romania, Vietnam, Brunei, Maldives, Trinidad and Tobago. Plastic currency is being used in Australia since 1990.
Plastic currency has many benefits. Plastic notes are durable. Neither are they dirty, nor do they get cut or torn. Printing costs are saved. The scope for fake currency is eliminated and paper is also saved. Which is also good for the environment.
Recently the news came out that plastic notes of ₹ 10 and ₹ 20 will be introduced soon! RBI’s proposal had received the green signal from the government. According to RBI, studies conducted in many countries of the world have shown that polymer notes are much more durable than normal paper notes.