Rajasthan News

Indian Currency Soon to Go Plastic

by RajasthanDirect
Mar 26, 2014

The govt has decided to go for plastic currency for which it will be tested in few cities first ,Kochi, Mysore, Jaipur, Bhubaneswar and Shimla have been identified for the pilot test where 1 billion notes will be issued.The test will be started in these cities with plastic banknotes of Rs 10 denomination.

“Security clearance was given last year and about eight firms have shown interest,” said the official, adding that the notes may have to be printed abroad as India does not have the technology.Based on the results of the pilot test, the government will take a call on the introduction of plastic notes.

The plan, at present, is to gradually phase out paper notes across the country, possibly starting with lower denomination notes and then moving on to high value notes of Rs 100 and above.The finance ministry and the RBI have been working on the concept of polymer or plastic currency notes since 2010 since these are more durable than their paper counterparts.

Plastic notes have gained currency in over 30 countries in the past few years. Australia was the first country to introduce plastic bank notes in 1968.

Src- http://indianexpress.com/article/business/business-others/currency-to-go-plastic-soon-starting-with-r10/

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