RBI Examines Introduction of Polymer Currency Notes
Governor Sanjay Malhotra Says Proposal Under Preliminary Review, No Final Decision Yet
- RBI evaluating proposal to introduce polymer currency notes
- Governor says no final decision has been taken so far
- Central bank studying advantages and challenges of plastic notes
- RBI assures adequate currency supply across ATMs and bank branches
GG News Bureau
Mumbai, 6th June: Reserve Bank of India (RBI) Governor Sanjay Malhotra has said the central bank is examining a proposal to introduce polymer or plastic currency notes in India, though no final decision has been taken on the matter.
Addressing queries on reports regarding polymer currency, Malhotra said the proposal remains under consideration and is currently at a preliminary stage.
“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,” the RBI Governor said.
He acknowledged that recent reports about the possible introduction of polymer notes contain elements of truth but clarified that the RBI has not yet reached any conclusion.
“We are examining the pros and cons of it and whether it would be worthwhile to implement. It is still at a preliminary stage,” he said.
The RBI is currently evaluating the potential benefits and challenges associated with polymer-based currency before deciding whether such notes should be introduced into circulation.
Polymer notes, which are already used in several countries, are generally considered more durable and resistant to wear and tear than traditional paper currency. However, the central bank is assessing their overall feasibility in the Indian context.
On the availability of cash in the banking system, Malhotra assured that adequate currency stock is available and that the RBI remains prepared to address any localised shortages.
“If there is a shortage, we will certainly ensure that the shortage is met,” he said.
The Governor stressed that sufficient currency is available for distribution through banks and ATMs across the country.
“Our full effort will be to ensure that wherever there is a shortage of currency in one or two places at ATMs, we will deliver currency there promptly and at a rapid pace,” he added.
The remarks come amid growing discussions on the future of currency management and the possible adoption of more durable note materials, even as the RBI continues to ensure smooth cash availability throughout the country.
