Overview
- RBI Governor Sanjay Malhotra said Friday the central bank is examining a proposal for polymer (plastic) banknotes but has not taken any final decision and the effort remains at an early stage.
- Polymer notes are made from a plastic substrate rather than cotton‑pulp paper, and studies show they can last two to five times longer, which would reduce how often the RBI must print and replace worn notes.
- Polymer substrates allow security elements such as transparent windows, holograms and colour‑shifting inks that are harder to copy, and countries that adopted polymer currency have generally seen lower successful counterfeiting.
- India has trialled polymer Rs 10 notes in cities including Jaipur, Shimla, Bhubaneswar, Mysuru and Kochi since 2007 and more recently tested 'varnished' paper notes as an interim durability measure.
- The governor’s remarks followed the MPC decision to keep the repo rate at 5.25 percent and publish GDP growth and inflation projections, and the RBI said any move to polymer would require procurement, production and logistical choices rather than immediate rollout.