RBI to float global tender on polymer bank notes

The Reserve Bank of India (RBI) would soon float global tender for introducing polymer currency notes, Deputy Governor K.C. Chakrabarty said Friday.

“We have already submitted our proposal to the Ministry Of Finance and Ministry of Home Affairs for clearance. Once it is cleared, then our next process is to float global tender for introduction of polymer bank notes,” Chakrabarty told journalists after inaugurating the RBI branch office here in Meghalaya.

“Counterfeiting of plastic notes is very difficult and therefore, we are planning to launch these polymer currency notes on experimental basis at five centres based on different weather condition,” he said.

Chakrabarty said field trials of Rs.10 polymer bank notes will be conducted in five cities — Mysore, Kochi, Jaipur, Shimla and Bhubaneswar.

“Our proposal is not only aimed at checking the counterfeiting but also to cut down printing cost involved with the paper notes as they need early replacement due to soiling and mutilation,” he said.

Polymer notes have relatively longer life compared to the prevailing paper bank notes and may help in checking counterfeiting.

The average life span of polymer currency notes is five years while the paper currency notes is one year.

Polymer notes were first introduced in Australia to safeguard against counterfeiting of currency.

Besides Australia, other countries which have introduced plastic notes are New Zealand, Papua New Guinea, Romania, Bermuda, Brunei and Vietnam.