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Govt to print plastic currency notes to check counterfeiting

The central government today informed the Parliament that it has decided to print plastic currency notes and that the procurement of material required for this purpose has already started.

India TV Business Desk, New Delhi [ Published on: December 09, 2016 15:45 IST ]
Govt to print plastic currency notes to check counterfeiting

The central government today informed the Parliament that it has decided to print plastic currency notes and that the procurement of material required for this purpose has already started.

The government’s response came in response to a query in Lok Sabha on whether the RBI proposes to print plastic currency notes in place of paper ones.

"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.  


 

The Reserve Bank for long has been planning to launch plastic currency note after field trials.

In February 2014, the government had informed Parliament that one billion plastic notes of Rs 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.

Plastic notes have an average life span of about five years and are difficult to imitate. Also, currency notes made of plastic are cleaner than paper ones. Such notes were first introduced in Australia to safeguard against counterfeiting.

Replying to another question, Meghwal said it was informed by RBI in December 2015 that they have received some banknotes of Rs 1,000 without having security thread which were printed at Currency Note Press (CNP), Nashik, on paper supplied by Security Paper Mill (SPM), Hoshangabad.

An enquiry has been initiated by Security Printing and Minting Corporation (SPMCIL) and the units involved (SPM and CNP).

"Major penalty chargesheet has been issued to the personnel concerned. Disciplinary proceedings have been initiated as per departmental rules," the minister said.

Meghwal further said action has been taken to strengthen quality procedure and online inspection system in manufacturing process and special training has been given to the persons concerned to avoid such types of mistakes in future.

"Additional inspections have been introduced to ensure defect-free production," he said.

(With PTI inputs)

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