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Reserve Bank of India is soon going to start the first pilot project of notes made of plastic i.e. polymer in the country. According to media reports, this is the next step in RBI’s plan to bring new generation currency in the country.
Trial will start with ₹10 and ₹20 notes
In the initial phase, the Reserve Bank will first test it on small value notes. According to information received from official sources, the first pilot project is expected to start with small notes of ₹10 and ₹20 value.
RBI will take further decisions only based on the results and experiences of this trial. If this testing is completely successful, then RBI can start the full-scale launch of these polymer notes in the country from the year 2027.
Old paper notes will also work along with new notes
The arrival of polymer notes in the Indian market does not mean that the existing paper notes will immediately go out of circulation. RBI has made it clear that the new currency will not replace the old paper notes.
- Co-existence: Both polymer and paper notes will continue to circulate together in the market.
- Change in phase: This change will be done gradually and in a phased manner.
- Circulation will continue: Until the new notes are fully established, paper notes will remain in circulation.
RBI issued global tender
Preparations for this entire project intensified when the note-printing unit of RBI issued ‘Expression of Interest’ (EOI) at the global level. This tender has been invited for the manufacturing and supply of a special type of ‘Polymer Substrate Sheet’, which is used to print these notes.
According to the documents, manufacturers from across the world have been invited to supply polymer substrate equipped with advanced safety features. The last date for submitting bids under this tender has been fixed as August 18.
New notes will not burst, will be safe from water and dust
Banknotes made of polymer are much more durable than traditional paper notes. These notes remain safe even in water, dirt and dust. Apart from this, these notes do not tear easily. Because of this, they remain unbroken and clean in the market for a long time.
The biggest advantage of polymer sheet is that advanced safety features can be easily added to it. This makes it almost impossible for fraudsters making fake notes to copy them, which will further strengthen the country’s security system.
Polymer notes already in use in many big countries of the world
Polymer banknotes have been in use for a long time in many developed countries of the world. These include countries like Australia, Canada, United Kingdom (UK) and New Zealand.
RBI had earlier also expressed its desire to introduce polymer notes to increase the life of the notes circulating in the country and to improve their quality. Now this pilot project, which will start soon, will be the first real test. However, no official statement has come out from RBI on this yet.
What are polymer banknotes?
Instead of paper, these notes are printed on a special type of plastic material i.e. polymer substrate. These are as light to touch as normal notes, but do not fade even when soaked in water and last a long time.
What is expression of interest?
This is a kind of global tender document, through which the Reserve Bank invites experienced and qualified companies from around the world to send proposals with their capacity, technology and prices for the project.