Question : INTRODUCTION OF PLASTIC NOTES

(a) whether the Reserve Bank of India (RBI) is planning to introduce plastic notes on a pilot basis in the country and if so, the details thereof;

(b) the manner in which plastic notes help in defeating counterfeit notes;

(c) details of cities that are likely to be selected to introduce such notes;

(d) whether the RBI proposes to replace the paper currency notes by plastic currency notes; and

(e) if so, the details thereof and the likely expenditure thereon and the time by which the same is likely to be implemented in the country?

MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRIJAYANTSINHA)

(a) to (c): It has been decided to introduce plastic notes in the denomination of 110/-. One billion plastic notes of the denomination oft 10/- will be introduced in a field trial in five cities selected for their geographical and climatic diversity. The primary objective of introduction of polymer/plastic notes is to increase its life and not to combat counterfeiting. The cities selected for field trial are Kochi, Mysore, Jaipur, Shimla and Bhubaneswar.

(d) & (e): RBI has informed that since the proposal is at a trial stage, the decision on replacement of currency notes with plastic notes will depend on the outcome of field trial.