RBI considering plastic currency notes, no decision taken yet: Governor Sanjay Malhotra
New Delhi, June 6
The Reserve Bank of India is examining a proposal to introduce polymer or plastic currency notes, although no final decision has been taken yet, Governor Sanjay Malhotra has said.
Malhotra has said that the proposal remains under consideration and is still at a preliminary stage.
He stated that as far as polymer notes are concerned, the proposal is under consideration, adding that as soon as any decision is taken on it, we will inform you.
Malhotra acknowledged that recent reports regarding polymer notes contain some truth but clarified that the central bank has not reached any conclusion so far.
"We are examining the pros and cons of it and whether it would be worthwhile to implement. It is still at a preliminary stage," he said.
Moreover, the central bank is currently evaluating both the potential advantages and challenges associated with polymer currency before deciding whether to proceed with its introduction.
In addition, the RBI Governor assured that adequate currency is available in the banking system and said the central bank is prepared to respond quickly if localised shortages arise.
"If there is a shortage, we will certainly ensure that the shortage is met," he said.
Stressing that sufficient currency stock is available for ATMs and bank branches, Malhotra said the RBI would ensure rapid replenishment wherever required.
"Our full effort will be to ensure that wherever there is a shortage of currency in one or two places at ATMs, we will deliver currency there promptly and at a rapid pace," he added.
The remarks come as the RBI reviews the feasibility of polymer notes while maintaining that adequate cash remains available for distribution across the banking system.
— IANS
Reader Comments
Interesting. Australia has used polymer notes for years and they definitely hold up better. But the transition cost and infrastructure changes would be massive for India. Hope the RBI does proper cost-benefit analysis before jumping into this.
Honestly, I'd rather see the government focus on improving digital payment infrastructure in rural areas and reducing cash dependence rather than changing the material of notes. But if polymer notes mean less counterfeit currency, I'm all for it. 👍
Can we talk about the elephant in the room? Demonetization was a disaster in terms of execution. If they do introduce polymer notes, they better have a phased plan and enough public awareness campaigns. Also, what about small vendors who deal with worn-out notes daily?
Polymer notes won't solve the core issue - we still need to ensure every small shop, every village has enough currency. Governor says adequate stock is available, but ground reality in Tier-3 cities and rural areas is different. Hope RBI focuses on distribution first.
Good to see RBI being cautious and doing proper research before implementation. The polymer note technology is proven globally. My main concern would be environmental impact and whether the notes can withstand our extreme weather conditions properly.
G Gaurav U Finally We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.