NEW DELHI (Commodity Online) : Reserve Bank of India (RBI) is considering plastic notes in place of paper currencies with the dual aim of improving their shelf life and combating counterfeiting.
According to sources, the RBI is planning to introduce one billion 10-rupee notes initially and has floated a global tender for introducing polymer varieties with the first examples expected in circulation before the end of next year.
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The number of fake notes in the system has risen nearly 95 per cent in the past five years, according to data from the Reserve Bank of India.
The central bank also has plans to print polymer currency in higher denominations, which are the focus for counterfeiters.
The life span of plastic money is four to five times higher than that of paper money and it is far more difficult to forge.
A number of countries have used plastic or polymer notes for a long time.
Australia has been using them since 1966 while they have also been introduced in New Zealand, Romania, Brunei and Vietnam.
