Future of Plastic Currencies in India

Financial Minister P Chidambaram had announced that the plastic copies of Rs.10 are going to come out soon. Reports indicate that the different countries in the world are also going to follow this path.  This decision is going to bring about a great change in the field of notes. The tradition of using paper for making notes by banks for about 300 years is going to be changed. 

Only low value notes like 10Rs will come out first. Only later will the high amount notes will be issued. The opinion of the experts in the financial field is that no hurry is required for the issue of plastic notes. In the present situation of increasing fake note issues there is an opinion of using technology to trace notes that would be more advantageous.

Plastic currency For India

Benefits of Plastic Notes

It is said that the plastic notes have a number of benefits when compared to the present paper notes.

•  The main benefit is that it can be used for a longer period without damage. The time span of a paper note is considered to be 6 months. But plastic notes are considered to last for a time period of forty months.
• Another argument that favors plastic notes is that it is eco friendly. It can be recycled after use.
• The facts pointed out in favor of plastic notes are it’s convenience of handling
• Water proof (i.e., even if it is washed along with the clothes in a washing machine nothing happens to it)  Even those going for surfing can keep their money in the pockets since it is water proof.
• Less chances for fake notes when compared to the present paper notes.
• An important advantage of plastic notes is that it minimizes the amount of spreading of bacteria. The problem of spreading bacteria while exchanging notes is comparatively less in plastic notes.

 Plastic Note Implementations in Other Countries

Bank of England has decided to bring the decision of using plastic notes to validity from 2015. The paper notes will be completely withdrawn from market slowly.  Plastic notes were first issued by Australia.Australia presented the plastic notes for the first time in 1988. Bank of England has already given a contract of one billion pounds to a press of Debden in Essex. The bank authorities clarified that they took in to account the press’ ability to make plastic currencies while providing them the contract. The company named De La Ru having its headquarters at Basingstoke, has been active in making plastic notes from 2003 onwards. This company has finally produced and provided plastic currencies to the Pacific island country, Fiji.

Plastic notes are used commonly in places like New Zealand, Rumania, Papua New Guinea, Mexico and Vietnam. The authorities of the Bank of England says that it is clear from the experience of Australia that the use of plastic notes is the best solution to prevent the publicity of fake notes.

Barriers for Plastic Note Implementation 

1. The only problem faced by plastic notes is that its cost of production is comparatively higher than that of paper notes. 
2. The only problem that we have to face with the arrival of plastic notes is that the present ATM machines have to be made capable of handling the plastic notes too .It is considered that a huge amount would be required for this process alone
3. Technology and equipments to fake note detection in plastic notes

 Business Opportunities

• New equipment's to check fake plastic currency .
• New currency counting machines
• New currency counter machines

Forecasting 

• Within 2020 , Plastic notes sure to replace paper notes in India

Planning is going on for the plastic notes to come into reality. There are a lot of advantages for plastic notes when compared to paper notes. Even though many countries have already started using it, India is still checking the pros and cons of using plastic notes.