RBI to Launch Polymer Currency Notes from Next Financial Year

The Reserve Bank of India (RBI) is preparing to introduce polymer (plastic) currency notes from the beginning of the next financial year, RBI Governor Sanjay Malhotra announced. The new notes are expected to be more durable and have a significantly longer lifespan than traditional paper currency.

Polymer notes are made from a specially engineered plastic film, making them stronger, more flexible, and more resistant to wear and tear. Unlike paper notes, they are less likely to get damaged even after prolonged circulation.

Polymer Notes to Last Longer

Speaking after announcing the latest Monetary Policy Review, Governor Sanjay Malhotra said several countries have successfully used polymer currency notes for more than 30 years. He noted that these notes are especially suitable for low-denomination currency, which experiences frequent handling and faster deterioration.

"If everything goes according to plan, our objective is to introduce polymer notes into circulation at the beginning of the next financial year," he said.

RBI Focuses on 4% Inflation Target

Governor Malhotra reiterated that the RBI`s future decisions on interest rates and monetary policy will continue to be data-driven. He emphasized that the central bank`s primary objective is to maintain retail inflation at around 4% over the medium term.

RBI on Capital Inflows and Rupee Stability

The RBI Governor also said that foreign exchange inflows under the existing scheme remain strong and are expected to continue until the scheme concludes. Responding to questions about ending the programme early, he clarified that the RBI has no plans to discontinue it at present.

On the Indian rupee, Malhotra stated that despite robust foreign capital inflows, the currency has remained stable. He added that the rupee could strengthen further if global uncertainties ease, while assuring that the RBI will continue to ensure orderly and stable movements in the exchange rate.