The days of soiled, washed, partially torn and mutilated bank notes are numbered.
By the year-end, the Reserve Bank of India (RBI) will come out with polymer (plastic) notes of Rs. 10 denomination and follow it up with such notes of other denominations.
“We will start with Rs. 10 notes on an experiment basis and then based on it, Rs. 20 and Rs. 50 notes will also be issued,” said an RBI source.
Polymer notes are in circulation in countries such as New Zealand, Sri Lanka, Malaysia and Hong Kong. These countries have additional capacities to produce plastic notes, said the source. “The RBI could have imported plastic notes from these countries but after some consideration we have decided to produce them internally,” the source said. Currency of Rs. 10 are in maximum circulation and its production cost is more compared to notes of other denominations.
On the issue of fake notes, he said that though there were” no cases of such notes in Rs. 10 denomination, plastic notes would have enough safety features.
The RBI was not likely to issue plastic notes of Rs. 5 denomination as it was focusing more on its coins, the source added.
