TNN | Jan 25, 2014, 03.27AM IST
MUMBAI: The ReserveBank of India has finally floated a tender for plastic currency notes after years of deliberation. However, the tender is only for a pilot project and a final call on introduction would be taken subject to the performance of the notes.
"We have only recently floated the tender. This requires coordination from various parties, including the government, the printing presses and the Reserve Bank of India," said a senior banker. He said the plastic notes should be launched by the middle of the year.
The official said that the biggest concern over plastic currency was that it was never tried out in such extreme weather conditions like India. The extreme weather means that the notes have to survive temperatures over 40 degrees in some states and sub-zero temperatures in parts of the Himalayas and high level of humidity in parts of the country.
In May last year, minister of state for finance Namo Narain Meena, in his reply to a Parliamentary question, said that plastic currency would first be tried out in Kochi, Mysore, Jaipur, Bhubhaneshwar and Shimla - all centres with different weather conditions. The pilot project will comprise low denomination currency notes.
The introduction of polymer notes has been discussed at the FICN (Fake Indian Currency Note) Coordination Group that has been formed in the home ministry to share information gathered by various authorities on counterfeit currency. Besides being more difficult to copy, plastic currency is far more resilient that the cotton fibre-based currency that is used at present.
RBI sources said that the average life of a Rs 10 note is around six month. Plastic currency besides, being stain proof, does not tear easily but costs more than double the cotton fibre-based currency. Several countries have tried out polymer currencies with the UK expected to introduce its first polymer banknote in 2015.
Source
"We have only recently floated the tender. This requires coordination from various parties, including the government, the printing presses and the Reserve Bank of India," said a senior banker. He said the plastic notes should be launched by the middle of the year.
The official said that the biggest concern over plastic currency was that it was never tried out in such extreme weather conditions like India. The extreme weather means that the notes have to survive temperatures over 40 degrees in some states and sub-zero temperatures in parts of the Himalayas and high level of humidity in parts of the country.
In May last year, minister of state for finance Namo Narain Meena, in his reply to a Parliamentary question, said that plastic currency would first be tried out in Kochi, Mysore, Jaipur, Bhubhaneshwar and Shimla - all centres with different weather conditions. The pilot project will comprise low denomination currency notes.
The introduction of polymer notes has been discussed at the FICN (Fake Indian Currency Note) Coordination Group that has been formed in the home ministry to share information gathered by various authorities on counterfeit currency. Besides being more difficult to copy, plastic currency is far more resilient that the cotton fibre-based currency that is used at present.
RBI sources said that the average life of a Rs 10 note is around six month. Plastic currency besides, being stain proof, does not tear easily but costs more than double the cotton fibre-based currency. Several countries have tried out polymer currencies with the UK expected to introduce its first polymer banknote in 2015.
Source
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