After banning Rs.500 and Rs.1000 currency notes, Narendra Modi-led NDA government has now decided to issue plastic currency notes.
PTI reported that the government has informed Parliament about the decision and they have also begin procurement of material.
“It has been decided to print banknotes based on plastic or polymer substrate. The process of procurement has been initiated,” Minister of State for Finance Arjun Ram Meghwal said in a written reply in Lok Sabha.
Earlier, the government had said the notes would be introduced in the country after field trials.
In February 2014, the government told Parliament that one billion plastic notes of Rs 10 denomination would be introduced in a field trial in five cities namely Kochi, Mysore, Jaipur, Shimla and Bhubaneswar.
However this isn’t the first time such suggestion has been made. Before Modi government, Reserve Bank had been planning to launch plastic currency.
It is reported that plastic currency last upto five years and are difficult to imitate. Such notes have been introduced in Australia to safeguard against counterfeiting.