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India May Soon Get Plastic Currency Notes as RBI Reviews Proposal
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Plastic currency notes may come to India in the coming years. RBI Governor Sanjay Malhotra said the central bank is studying the idea, but no final call has been made yet.
The plan has come up at a time when the use of cash remains high. Plastic notes can last longer than paper notes and may help cut the need for frequent reprinting.
This idea has been around for many years. Back in 2014, the government told Parliament about a trial of one billion Rs 10 plastic notes.
Five cities were picked for the test — Kochi, Mysore, Jaipur, Shimla and Bhubaneswar. These places were chosen because they have different weather conditions. The trial was meant to check how the notes performed in different parts of the country.
If the plan gets approval, India may see plastic banknotes in daily use in the future.