Overview
- RBI Governor Sanjay Malhotra said on Friday that a proposal to introduce polymer (plastic) banknotes is under consideration, that the move is at a preliminary stage, and that the central bank has not taken any decision yet.
- The central bank is examining feasibility, costs, security gains and logistics before deciding, and it has promised to inform the public once a conclusion is reached.
- Polymer notes are made from a plastic substrate that several countries use because they last longer than cotton‑paper, resist moisture and dirt, and allow advanced security features such as transparent windows and holograms.
- RBI data cited in coverage show roughly two lakh damaged notes withdrawn each year and a rise in security‑printing expenditure, which are key drivers for considering a more durable substrate.
- India previously planned a trial of one billion Rs 10 polymer notes for five cities but shelved it over technical and operational issues, and the current review revives that long‑running policy discussion rather than announcing a rollout.