Five cities across India with diverse geographical and climatic conditions will be the first to start using plastic bank notes of ₹10 denomination, with the Centre approving a field trial. The notes are considered to be cleaner than paper currency, will last longer and are difficult to counterfeit.
The Finance Ministry has asked the Reserve Bank of India to go ahead with the procurement of the requisite plastic substrate material and approved the printing of ₹10 notes, Minister of State for Finance Arjun Ram Meghwal told Parliament on Friday.
“Plastic bank notes are expected to last longer than cotton substrate-based ones,” Mr. Meghwal said.
“Over the years, central banks across the world have been exploring different solutions for extending the life cycle of bank notes. These include introduction of plastic ones and other developments in substrates for enhancing durability including use of natural fibre blends and varnish,” he pointed out.