Economy
RBI to issue polymer currency notes from beginning of next fiscal: Governor Sanjay Malhotra
The development
What happened
Reserve Bank of India Governor Sanjay Malhotra announced that the Reserve Bank of India (RBI) will begin issuing polymer currency notes starting from the beginning of the next fiscal year. The announcement marks a significant shift in the material composition of India's physical currency, moving away from traditional paper-based notes to more durable polymer substrates.
At a glance
Key facts
Announced by: Governor Sanjay Malhotra
Issuing Authority: Reserve Bank of India (RBI)
Timeline: Beginning of the next fiscal year
Change: Introduction of polymer currency notes
Background
Context
- Polymer banknotes are made from a transparent plastic film, such as biaxially oriented polypropylene (BOPP), making them more resistant to dirt, moisture, and wear compared to cotton-paper notes.
- Several countries have previously adopted polymer currency to improve durability and incorporate advanced anti-counterfeiting technologies.
Significance
Why it matters
- The transition to polymer currency notes is expected to significantly increase the lifespan of banknotes in circulation, potentially reducing printing and replacement costs for the central bank.
- Enhanced durability and modern security features on polymer substrates can help curb the circulation of counterfeit currency notes within the Indian economy.