RBI to introduce plastic currency to check counterfeiting

The Reserve Bank o India (RBI) is working on the introduction of plastic currency in the country in a bid to check the menace of counterfeiting of notes.

RBI is taking up a pilot project for issue of plastic currency notes under which notes of Rs10 denomination will be distributed through the central bank's five regional offices.

"Counterfeiting of plastic notes is very difficult. So we are planning to launch some plastic money on a pilot basis in 4-5 centres like Jaipur, Shimla, Bhubaneshwar and other centres. We are working on it," RBI deputy governor HR Khan said today.

Counterfeiting of plastic currency notes also involves huge cost. However, unlike paper currency the plastic notes would last longer and is less likely to get soiled or mutilated.

The polymer currencies would have an average life span of five years against one year for paper currencies, Khan noted.

The pilot project will also look into the environmental impact of the polymer currencies besides the potential cost savings.