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Will India Move Towards Plastic Currency?

Mr. C.S. Sudheer | Updated On Saturday, December 17,2016, 10:36 AM
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Will India Move Towards Plastic Currency?

 

The Government recently scrapped 500 and 1000 rupee notes and replaced them, with some really good 500 and 2000 rupee notes. Have you seen these new 500 rupee notes? On the back of the 500 rupee note, you will see the image of the Red Fort, with the Indian Flag placed on it. Feel a sense of pride at our ancient heritage….Then you have the 2000 rupee note…. Your new 2000 rupee note, will have an image of Mangalyaan.  This is to celebrate, the success of India’s Mars mission….. Feel proud of our scientific achievements?

Yes…the Government knows you are happy with these new 500 and 2000 rupee notes. The Government is now getting ready to take the next step. The Government has decided to print plastic currency notes; the procurement of material for printing these plastic notes has already begun. You must be keen to know, why the Government wants to print these new plastic notes. This article will give you all the answers you seek.

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What are plastic currency notes?

Plastic currency notes also known as polymer notes, were first used in Australia. Yes… Australia is the pioneer of polymer notes. But, these plastic notes are also used in countries like Canada, Romania, New Zealand, Chile among others.

The Government of India, has informed the Parliament, that it has made a decision to print plastic currency notes. These notes would be made of plastic or polymer substrate.

Why plastic currency notes?

The plastic currency notes, have a longer life span than the paper rupee notes….Oh... by the way, the paper rupee notes are not made of paper…They are made of cotton rag. The plastic currency notes have an average lifespan (shelf life) of 5 years. The plastic currency notes are much stronger than the paper rupee notes. They last much longer than paper rupee notes.

There’s a real urgent need for plastic currency notes…One out of every five paper notes (That’s around 20%)…have to be disposed every year, as they get soiled. The plastic currency notes are cleaner than paper notes. Studies have shown that paper rupee notes are full of disease causing micro-organisms. Plastic notes which are much cleaner than paper rupee notes, could solve this problem.

It’s time to say goodbye to all those soiled, torn paper rupee notes, full of scribbling on them.

Can these plastic rupee notes be counterfeited?

Plastic currency notes have many security features, which makes photocopying them or scanning them very difficult. They are not easy to reproduce or imitate. Australia was the first country to use plastic notes, to check counterfeiting of currency.

RBI has always been interested in plastic currency notes. RBI is observing the performance of these plastic notes, in countries which use them. RBI is happy with the performance of these plastic notes.

Have these plastic rupee notes been tested?

The Government in February 2014 had informed the Parliament, that it would conduct field trials of one billion plastic notes of Rupees 10 denomination. Five cities were chosen to conduct field trials of these plastic notes. The Government wanted to test these plastic notes, in cities located in different parts of the country, with different climate. The Government wanted to see how these plastic rupee notes, would perform in cities with different climates…extreme hot conditions, rainy weather, humid climate and extreme cold. The cities chosen were Jaipur, Kochi, Mysuru, Shimla and Bhubaneshwar. These cities have different climate and are very good for field trials of plastic notes.

Yes…plastic rupee notes could be the solution against fake currency. The problem could be solved at the roots. India would rapidly progress, with stronger, cleaner and hard to imitate plastic notes. Be Wise, Get Rich.

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Article Author

Mr. C.S. Sudheer

Mr C.S.Sudheer is a management graduate. He started his career with ICICI Prudential Life Insurance and later on worked with Howden India. After his brief stint in Howden India, he moved on and incorporated Suvision Holdings Pvt Ltd which is the sole promoter of IndianMoney.com. He aims to build a nation that is financially literate with investment savvy citizens.

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