Could India get plastic currency notes? RBI Governor Sanjay Malhotra says proposal under review — TradingView News
The Reserve Bank of India (RBI) is considering a proposal to introduce polymer, or plastic, currency notes, but no decision has been taken so far, RBI Governor Sanjay Malhotra said on Friday. Speaking at the post-monetary policy press conference, Malhotra said the proposal is currently under examination and remains at an early stage.
“As far as polymer notes are concerned, the proposal is under consideration. As soon as any decision is taken on it, we will inform you,” Malhotra said. The governor noted that media reports on the subject contain some truth, but clarified that the central bank has not yet concluded the matter.
“We are examining the pros and cons of it and whether it would be worthwhile to implement. It is still at a preliminary stage,” Malhotra said.
The RBI is evaluating the potential benefits and challenges associated with polymer currency notes before deciding whether to move ahead with their introduction.
Separately, Malhotra assured that there is adequate currency available in the system and said the central bank is prepared to address any localised cash shortages.
“If there is a shortage, we will certainly ensure that the shortage is met,” he said.
Emphasising that sufficient currency stock is available for ATMs and bank branches, the governor added, “Our full effort will be to ensure that wherever there is a shortage of currency in one or two places at ATMs, we will deliver currency there promptly and at a rapid pace.”
The remarks come as the RBI reviews the feasibility of polymer notes while maintaining that adequate cash is available for distribution and replenishment across the banking system.
Meanwhile, the Reserve Bank of India (RBI) on Friday kept its benchmark repo rate unchanged at 5.25 per cent, as expected, and announced a raft of measures to attract foreign capital and support the rupee amid growing risks to growth and inflation from the prolonged West Asia conflict, elevated energy prices and global supply-chain disruptions.
To support the rupee, the measures included scrapping taxes on interest income and capital gains for eligible foreign investors in government securities, offering concessional terms for foreign-currency deposits from non-resident Indians and subsidising hedging costs for select offshore borrowings.
*With Agency Inputs
