By TIOL News Service

NEW DELHI, NOV 30, 2014: WHILE replying to a query in the Lok Sabha, the MoS(Finance), Mr Jayant Sinha, said that the Government has decided to introduce plastic notes in the denomination of Rs. 10/-. One billion plastic notes of the denomination of Rs. 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 train are Kochi, Mysore, Jaipur, Shimla and Bhubaneswar.

The Reserve Bank of India 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.

Incorporating new security features and new designs in the banknotes to stay ahead of the counterfeiters is an ongoing process. And this is undertaken by the Government of India in consultation with the Reserve Bank of India (RBI) and other concerned Ministries/Departments/Organizations.

A High Level Committee under the chairmanship of Director General, Directorate of Currency, Ministry of Finance and having representatives from MHA, RBI and other concerned Departments/Organisations has been constituted to examine the security features and/or associated technology for incorporation in future series of banknotes.

The RBI website provides information to the public on security features of banknotes. The contents pertaining to awareness on Indian banknotes are available in www.paisaboltahai.rbi.org.in. Posters on “Know Your Banknotes” are displayed at bank branches. Regional Offices of RBI participate in various awareness programmes where the members of public are made aware of the features of banknotes and ways to identity genuine banknotes. Posters, leaflets, etc. are also distributed in such awareness programmes.

RBI has informed that a state of the art bank note paper mill with an annual capacity of 12,000 MT is being established at Mysore as a joint venture between Security Printing and Minting Corporation of India Ltd. (SPMCIL) and Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL). It is expected to be commissioned in the year 2015-16. Further, SPMCIL have undertaken expansion of Security Paper Mill, Hoshangabad with the installation of a new paper line of 6000 MT annual capacity. It is expected to start commercial production by early 2015.