Government allows RBI to print Rs 10 plastic notes

The Union Finance Ministry has given permission to Reserve Bank of India (RBI) to conduct field trials of plastic (polymer-based) currency notes of Rs 10 denominations.

It was announced by Union Minister of State (MoS) for Finance Arjun Ram Meghwal in a written reply in the Lok Sabha.

Key Facts 
  • These notes will be first introduced in five cities (not yet declared) across the country with diverse geographical and climatic conditions.
  • The Finance Ministry has asked the RBI to go ahead with the procurement of the requisite plastic substrate material and approved the printing of plastic Rs. 10 notes.
  • The plastic notes are considered to be cleaner than paper (cotton substrate-based) currency notes. They will last longer (average life span of about 5 years) and are difficult to counterfeit.
Background

Under the previous UPA Government, Parliament was told in February 2014 about a plan to print one billion plastic notes of Rs. 10 denomination for a field trial in five cities viz. Kochi, Mysuru, Jaipur, Shimla and Bhubaneswar.

Note: Plastic currency notes were first adopted by Australia in 1988 and are now used in more than 20 countries. These notes are smaller and stronger than cotton-based paper notes. They also have more security features that make them harder to counterfeit.

Enter Your Email Address To Subscribe Current Affairs Daily Digest, Daily Quiz and other updates on Current Affairs:

Advertisement

Categories: India Current Affairs 2017

Tags:

advertisement

Comments