1. RBI to soon test waters with plastic notes of one denomination

RBI to soon test waters with plastic notes of one denomination

RBI will soon "test waters" for plastic currency, beginning with Rs 10 notes and the process should be "fully on" in the coming year.

By: | Mumbai | Published: July 2, 2015 8:14 PM
indian rupee

RBI will soon “test waters” for plastic currency, beginning with Rs 10 notes and the process should be “fully on” in the coming year. (Reuters)

RBI will soon “test waters” for plastic currency, beginning with Rs 10 notes and the process should be “fully on” in the coming year.

“Plastic currency is to test waters with one denomination. We started the process of procuring it. But in the process some technical problems had come up. So we are redoing that. So in the coming year we should get the process fully on. That is about plastic currency per se,” Reserve Bank’s Deputy Governor R Gandhi today said.

He was replying to a question on the issue of plastic currency.

The RBI for long had been planning to launch plastic currency notes after field trials. It had also received tender bids for one billion notes.

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.

Plastic notes were first introduced in Australia to safeguard against counterfeiting. Several countries in the West have introduced plastic notes.

  1. Hemen Parekh
    Dec 24, 2015 at 6:59 am
    How to conquer Corruption ? There is only one sure - and superfast - way to get rid of corruption By introducing : * NEGATIVE MOTIVATION Putting behind bars ( - and right away ; not after 6 years ) , every corrupt fellow and immediately confiscating his ill-gotten wealth * POSITIVE MOTIVATION By abolishing Personal Income Tax and introducing Amnesty Scheme , incentivize # converting of black money into white # acceptance of all payments thru official channels As far as providing " Negative Motivation " is concerned , I had sent following suggestion to our Hon Prime Minister / Finance Minister / other Ministers / Secretaries etc , on 4th Nov 2015 : # INTERNET OF THINGS ( IoT ) As each currency note of Rs 500 / 1000 , is getting printed , embed it with microscopic RFID chips ( with this , current cost of a RFID chip will fall from 50 paise to 5 paise ) Besides communicating with each other , these chips will also transmit their existence location , through internet , to cloud-based servers of Income Tax Department This will form a " NETWORK OF CURRENCY NOTES ( NoC ) " You may like to call this Internet of Currency ( IoC ) , a sub-set of IoT ! # IP ADDRESS SYSTEM ( IP V 6.0 ) Each Rs 500 / 1000 currency note must be igned ( at the time of printing ) , its own unique Internet Address , using IP V 6.0 This IP address should be linked with the unique Serial Number printed on each note. Since IP V 6.0 , will be capable of igning " 2 * 10 to the power of 128 ", no of IP addresses , there is no danger of running out of addresses , even if we decide to extend this idea to Rs 100 currency notes ! Here are the most important BYE - PRODUCTs : * No more possibility of fake / forged / counterfeit , currency notes * No thief would ever want to steal such currency notes which continuously announce their location * No one would want to make any " Cash Deal " . All payments will become official only ! * Plastic currency notes will last 10 times longer ! This reform will enable the Central Government / Income Tax Department , to : * Continuously trace the movement of each of these higher denomination currency notes * Instantly locate any place ( using Google Map based GPS ) , where there is an aculation of more than Rs 1 Crore worth of currency notes Such aculation will be made to appear as a TAG CLOUD on the web site of IT Dept, like thousands of balloons floating on a map of India , capable of being drilled down to within 1 Sq Meter ! Of course , visible only to IT officers ; not to general public ! On each balloon , will appear a number announcing , " Amount of Cash here - Rs " ! This will vastly simplify the task of Anti Corruption Dept / Enforcement Dept etc Of course , RBI will need to allow 6 month's time to the owners of current paper currency notes of Rs 500 / 1000 , to get these exchanged with new plastic notes before withdrawal of the old notes from circulation Implementation of this suggestion , does NOT require ping of any BILL in Lok Sabha or being held to ransom in Rajya Sabha ! And it can be implemented in India , within ONE YEAR But if Chinese President Xi Jinping comes to know about the practicality of this suggestion , he might implement it in 6 months ! How come ? Simple ! Xi Jinping has the political will ! And no historical baggage ! ------------------------------------------------------------------------------------------------------- hemen parekh 24 Dec 2015 ( Also read blog " Create Wealth to Create Jobs " at , > Blogs )
    Reply
    1. H
      hindustani
      Jul 3, 2015 at 11:57 am
      Good decision and it would be appreciated if you print note with picture of National Bird or Animal.
      Reply

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