RBI has been authorized to conduct field trials of plastic notes of Rs 10 that have a longer life span. It has been decided" to conduct a field trial with plastic banknotes at five locations of the country. Approval for procurement of plastic substrate and printing of bank notes of Rs 10 denomination on plastic banknote substrates has been conveyed.
Over the years, central banks across the world have been exploring different solutions like plastic notes and other developments in banknote substrates for extending the life cycle of banknotes.
Kochi, Mysore, Jaipur, Shimla and Bhubaneswar are the five cities where the plastic notes would be introduced in a field trial.
According to the RBI, the expenditure was Rs. 2,376 crore in 2010-11, Rs. 2,736 crore in 2011-12 and Rs. 2,872 crore in 2012-13.
Plastic notes are difficult to imitate and have an average life span of about five years.