‘Polymer currency notes proposal under consideration’

RBI Governor Sanjay Malhotra on Friday said a proposal to introduce polymer currency notes is under consideration of the central bank, and the idea is currently at a preliminary stage.

Malhotra said no decision has been taken in the matter as yet, and the apex bank is examining the feasibility of such a move.

“As far as polymer notes are concerned, the proposal is under consideration. As soon as any decision is taken on it, we will inform you,” Malhotra said during the post-monetary policy press conference here.

The governor said media reports on the issue carry some truth, but clarified that the central bank has not taken any decision and the proposal remains at a preliminary stage.

“We are examining the pros and cons of it and whether it would be worthwhile to implement. It is still at a preliminary stage,” Malhotra said.

The RBI is evaluating the advantages and drawbacks of polymer notes and whether their introduction would be worthwhile, according to the governor.

In February 2014, the government informed Parliament that one billion plastic notes of the `10 denomination would be introduced in a field trial in five cities selected for their geographical and climatic diversity. The selected cities were Kochi, Mysore, Jaipur, Shimla and Bhubaneswar. The initiative was later put on hold as technological and operational issues surfaced.

Meanwhile, the central bank also said that there is adequate currency available in the system and assured that any cash shortage at ATMs would be addressed through replenishment.