MONEY
Plastic notes in your wallet soon? Pros and cons
RBI is reconsidering a decade-old plan to launch polymer banknotes, starting with ₹10 and ₹20 notes.
Over 23 billion soiled notes were withdrawn in 2025. Polymer notes can reportedly boost durability, lower replacement costs, and improve security features.
Social media is rife with theories. Reliance makes half of the synthetic plastic polymer in India, as per ET. Adani has announced plans to build a PVC plant in Gujarat.
What you should know
- •WHY IT COULD WORK - Water-proof money: Made of bi-axially oriented polypropylene (BOPP), the notes can be waterproof. - Durable: Plastic polymer notes last longer than cotton-based paper notes. - Security: Incorporating advanced features like see-through windows and micro-optic holograms makes counterfeiting significantly harder. - Polymer notes reportedly generate 32% fewer greenhouse gas emissions and have lower energy needs over the entire life cycle.
- •WHAT'S THE COST? - India tried piloting plastic notes in 2012. It was halted due to operational issues, including realigning of ATMs. - Heat factor: Unlike heat-resistant paper, polymer notes can clump in extreme Indian heat. - Adding to the plastic problem? Cotton-paper based currency biodegrades naturally, but plastic notes could make disposal difficult. Source: Mint, Indian Banking News
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