The brave decision took by the Government today on demonetization. Yes, Government today in a parliament announced that it has decided to print plastic currency notes and obtaining of material has already started.
Earlier RBI proposes Government to print plastic currency notes instead of paper notes. Now, Minister of State for Finance Arjun Ram Meghwal said in a written reply to RBI in Lok Sabha that, “Government has decided to print bank notes based on plastic or polymer substrate. The process has already started.”
The reserve bank for long has been planning to launch plastic currency note after field trials. In February 2014, the Government had informed parliament that it is going to introduce one billion plastic currency notes of Rs 10 in a field trial in five cities selected for their geographic and climatic diversity. The Selected cities were Kochi, Mysore, Jaipur, Shimla, and Bhubaneswar.
Plastic Currency Notes have an average lifespan of about five years, and they are difficult to imitate. There is another advantage of plastic money. Plastic notes are cleaner than paper ones. The Plastic notes were first launched in Australia to defend against fake ones.
Replying to another question, Meghwal said RBI in December 2015 informed that they had received some banknotes of Rs 1,000 without having security thread which was printed at Currency Note Press (CNP), Nashik, on paper supplied by Security Paper Mill (SPM), Hoshangabad.
Security Printing and Minting Corporation (SPMCIL) has already initiated an inquiry about this. The Minister Arjun Ram Meghwal further said action had been taken to support quality procedure and online inspection system in manufacturing process and special training has been given to the persons afraid to avoid such types of mistakes in future.