Introduction of plastic Currency

Ministry of Finance
Introduction of
Plastic Currency; one
billion pieces of Rs.
10 Banknotes on
Polymer Substrate to
be introduced on A
field Trial basis in
five Cities
With a view to
elongating the life of
banknotes,
particularly in lower
denominations, the
Reserve Bank of India
(RBI), in consultation
with the Government
of India has been
considering various
options including
printing of banknotes
on polymer substrate.
A decision had
accordingly been
taken to introduce
one billion pieces of
Rs. 10 banknotes on
polymer substrate on
a field trial basis in
five cities. The
primary objective of
introduction of
polymer/plastic notes
is to increase its life
and not to combat
counterfeiting.
The polymer
banknotes are made
from a non-fibrous
and non-porous
polymer. The Indian
Banknote paper is
made from long fibres
obtained from cotton
comber and linter.
There is thus no
direct relation
between paper based
currency and cutting
of trees.
The RBI has informed
that the Energy and
Resources Institute
was commissioned by
them to estimate the
environmental
impacts and carbon
footprints of plastic
currency vis-a-viz
paper currency. Their
study has found that
polymer notes would
be more environment
friendly than paper
based currency.