NEW DELHI (Aug. 24, 1 p.m. ET) — Indian government plans to bring in plastic currency to tackle the increasing menace of counterfeiting in the country.
The proposed currency would be launched with enhanced security features and government has directed the Reserve Bank of India to conduct field trial on INR 10 denomination in five cities having different climatic conditions and geographical locations, according to Minister of State for Finance Namo Narain Meena.
Plastic bank notes had been on the Reserve Bank's agenda since 2009.
The proposed plastic notes would have an average life span of five years compared to one year for paper currency. Besides studying potential cost savings, the pilot project will look into the environmental impact of the proposed plastic notes.
Polymer notes made from biaxially oriented polypropylene were first introduced in Australia to safeguard against counterfeiting.