Rumors have been doing the rounds for quite some time that RBI will soon introduce plastic currency. Initially, there was no confirmation of this news, but after a few days, the Reserve Bank itself confirmed it. Now, this plastic currency has also got the green light from the government, as announced recently.
Plastic notes will be introduced for the first time in India.
Recently, in the Lok Sabha, MPs Rampreet Mandal and Krishna Devi Shivshankar Patel asked the Finance Minister about the impact of plastic notes on the digital payment system. Further, he asked whether the government would completely replace paper notes with plastic notes.
The government approved this proposal
Responding to these questions in the Lok Sabha, Minister of State for Finance Pankaj Chaudhary said, “The Reserve Bank of India (RBI), on the recommendation of its Central Board of Directors, has approved field trials of 1 billion (100 crore) polymer notes in denominations of ₹10 and ₹20 to the government under Section 25 of the Reserve Bank Act, 1934. Further, a proposal was sent to issue polymer notes on a regular basis after the trial was successful. The government approved the proposal. is.”
Polymer notes are stronger.
The minister explained that according to the RBI, “International studies show that polymer notes have a significantly longer lifespan than paper notes. Currently, the introduction of polymer notes is in its early stages, so their impact on digital payments will be evident only after regular issuance begins. Moreover, cash and digital payment systems are complementary payment channels.”
Will paper notes be phased out?
It was also asked in the Lok Sabha whether paper notes will be discontinued in future. The minister explained that, as per RBI, polymer notes will also be issued along with paper notes. Currently, there is no proposal to completely replace paper notes with polymer notes. So, the public need not worry, as the paper notes will continue to be in circulation.
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