Now Reading: RBI targets polymer banknote rollout by next financial year
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RBI targets polymer banknote rollout by next financial year
RBI Governor Sanjay Malhotra said the central bank aims to have polymer banknotes in circulation by the beginning of the next financial year, if field trials and preparations go as planned. Speaking…
The Story in Brief
RBI Governor Sanjay Malhotra said the central bank aims to have polymer banknotes in circulation by the beginning of the next financial year, if field trials and preparations go as planned. Speaking after the Monetary Policy Committee briefing on Wednesday, he stated: 'We are targeting that they are in circulation, as per plan, in the beginning of next FY.' The move from paper to polymer notes is expected to improve durability and reduce replacement frequency.
Malhotra noted that polymer notes have lasted over 30 years in some countries and could be especially useful for lower-denomination notes with high circulation velocity. Both TimesNow News and Rediff report that challenges around printing, distribution, and ATM compatibility remain. The RBI is also focused on aligning inflation with its 4 per cent target and maintaining an orderly rupee trajectory.
The Indian Opinion
Cheering the polymer note plan as a neat fix for frayed currency misses the real test. While durability sounds good, the RBI has not said how much this switch will cost or whether ATMs and vending machines can handle the new notes smoothly. The public will judge not by longevity but by whether their local ATM dispenses the notes without a glitch. The first field trial result will settle the real question: is this a practical upgrade or just a shiny idea?
Sources (2): timesnownews.com, rediff.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
