Context
The Reserve Bank of India has invited bids for a fresh trial of polymer ₹10 banknotes, reviving an initiative first attempted in 2012–13. Polymer notes are expected to last longer, improve security and reduce recurring currency-printing costs, though import dependence remains a concern.
Explanation:
- Polymer banknotes use a durable polypropylene-based substrate instead of cotton-based currency paper.
- They resist water, dirt, folding and tearing, giving them a longer circulation life than paper notes.
- Longer life can lower the RBI’s recurring expenditure on printing, replacement, transport and destruction of soiled notes.
- Transparent windows, holographic features and complex designs improve anti-counterfeiting security.
- Worn polymer notes can be granulated and recycled into useful plastic products.
- Australia first introduced modern polymer banknotes in 1988; several countries subsequently adopted them.
- India’s earlier trial involved proposed circulation in selected cities with different climatic conditions.
- Import dependence for polymer sheets may affect cost, supply security and domestic self-reliance.
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