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Govt decides to print plastic currency notes, says procurement of material started

The Reserve Bank for long has been planning to launch plastic currency note after field trials.

By: PTI | New Delhi | Updated: December 9, 2016 8:16 pm
currency notes, new notes, notes, plastic currency, plastic notes, plastic currency notes, new plastic currency, corruption, parliament, winter session, parliament winter session, plastic substrate, polymer substrate, india news, indian express, indian express news Plastic notes are difficult to imitate and cleaner than paper ones.

Government on Friday informed Parliament that a decision has been taken to print plastic currency notes and procurement of material has started. “It has been decided to print banknotes based on plastic or polymer substrate. The process of procurement has been initiated,” Minister of State for Finance Arjun Ram Meghwal said in a written reply in Lok Sabha to a query whether RBI proposes to print plastic currency notes in place of paper ones. The Reserve Bank for long has been planning to launch plastic currency note after field trials.

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In February 2014, the government had informed Parliament that one billion plastic notes of Rs 10 denomination would be introduced in a field trial in five cities selected for their geographical and climatic diversity. The selected cities were Kochi, Mysore, Jaipur, Shimla and Bhubaneswar.

Plastic notes have an average life span of about five years and are difficult to imitate. Also, currency notes made of plastic are cleaner than paper ones. Such notes were first introduced in Australia to safeguard against counterfeiting.

Replying to another question, Meghwal said it was informed by RBI in December 2015 that they have received some banknotes of Rs 1,000 without having security thread which were printed at Currency Note Press (CNP), Nashik, on paper supplied by Security Paper Mill (SPM), Hoshangabad. An enquiry has been initiated by Security Printing and Minting Corporation (SPMCIL) and the units involved (SPM and CNP).

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“Major penalty chargesheet has been issued to the personnel concerned. Disciplinary proceedings have been initiated as per departmental rules,” the minister said.

Meghwal further said action has been taken to strengthen quality procedure and online inspection system in manufacturing process and special training has been given to the persons concerned to avoid such types of mistakes in future. “Additional inspections have been introduced to ensure defect-free production,” he said.

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  1. Kalidas
    Dec 9, 2016 at 10:54 am
    Will it be virgin plastic or recycled one? Such notes will pose problem when desired to be destro- paper decomposes, plastics don"t. lt;br/gt;lt;br/gt;This is why supermarkets are asked to charge for plastic bags which pose landfill problem. Such notes can not be shredded, must be incinerated at great cost. lt;br/gt;Further, the plastics are sticky, can not be counted easily. The counting machines will have to be redesigned. Hand counting will be very diffucult - one can not moist finger and count. The pieces will stick. lt;br/gt;lt;br/gt;Extremely costly and inconvenient exercise. Environalists will protest strongly.
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    1. M
      MyTake
      Dec 9, 2016 at 10:44 pm
      Check the possibility of using BITCOIN
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      1. M
        MyTake
        Dec 9, 2016 at 10:01 am
        Make only 100 Rupee notes to replace all except 50 Rupee ones
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        1. M
          MyTake
          Dec 9, 2016 at 10:43 pm
          To stop counterfeit currency, only notes of such denominations should be printed and put in circulation, cost of which will be higher or at least equal to that when some one wants to copy/print it! Material of course will determine the bulk of the cost.lt;br/gt;lt;br/gt;This little investment will go a long way to stop counterfeit money being in circulation.
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          1. R
            Raj
            Dec 9, 2016 at 3:44 pm
            Great work - in Singapore, they use plastic notes. Paper should be left behind, it is an outdated currency.
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