look news india
The Reserve Bank of India (RBI) is going to take a big step to make the country’s currency system more sustainable and modern. The Reserve Bank will now start a field trial of issuing plastic or ‘polymer’ banknotes in India, the proposal of which has been given official approval by the Central Government in the Parliament. After getting the consent of the government, now the Reserve Bank is preparing to print Rs 100 crore each i.e. a total of 200 crore new plastic notes of Rs 10 and Rs 20 denomination on a trial basis. This step will help in finding a permanent solution to the long standing problem of early spoilage of paper notes.
Will not get wet in water nor will it burst by hand: Know how different plastic notes are from paper notes.
After this decision of RBI, the question is arising in the minds of common people that when paper notes have been in circulation for years, then why was there a need to introduce new plastic notes. In fact, the biggest difference between polymer notes and traditional paper notes is their strength and structure:
-
Longevity and Strength: The life of plastic notes is more than 4 times compared to paper notes. It is almost impossible to tear, bend or melt them easily.
-
Texture difference: Traditional paper notes are made from cotton and cotton lint, while plastic notes are printed on a special ‘polypropylene’ plastic film.
-
Prohibition on counterfeiting: Polymer notes can be provided with transparent see-through windows and advanced security features, making them very difficult to counterfeit currency or counterfeit notes.
-
Freedom from dirt and bacteria: The surface of plastic notes is non-porous. Because of this, sweat, dust, dirt or bacteria do not stick to them and they remain clean for a long time when touched.
How much does the government spend on printing paper notes? Revealed through RTI
The Reserve Bank spends crores of rupees every year on printing paper notes. According to information received from an RTI in the financial year 2021-22, the government’s cost of printing paper notes of different denominations was as follows:
-
A ₹10 note: 96 paise
-
A ₹20 note: 95 paise
-
A ₹50 note: Rs 1.13
-
A ₹100 note: Rs 1.77
-
A ₹200 note: Rs 2.37
-
A ₹500 note: Rs 2.29
-
A ₹2000 note: Rs 3.54
Initial printing will be 30% to 60% expensive, still why is RBI bringing it?
The primary printing cost of polymer i.e. plastic notes is about 30% to 60% higher than that of traditional paper notes. This is because the special polypropylene material used, transparent windows and high safety standards increase the initial cost. However, the Reserve Bank believes that even though the first printing of plastic notes is expensive, they remain in the market for a long time due to being 2 to 6 times more durable. Unlike paper notes, there is little chance of them melting or bursting quickly, due to which the government will not have to bear the huge financial burden of printing new notes again and again. This trial of 200 crore notes is being conducted only to assess this economic mathematics correctly.
Will old paper notes be discontinued? Know the government’s stance
With the news of the arrival of new plastic notes, confusion spread among many people whether the old paper notes of Rs 10 and Rs 20 will be discontinued. On this, the government has clarified in the Parliament that there is no proposal to ban paper notes. The new polymer notes will be put into circulation in the market in parallel with paper notes (Co-existence Model). That is, until these trials are completely successful and are established in the economy in a phased manner, the paper notes of Rs 10 and Rs 20 held with you will remain completely valid and will continue to function normally.