As part of its clean note policy initiative, the Reserve Bank of India is planning to introduce Rs 10 plastic notes in five cities on a trial basis.
In its 2012-13 Annual Report, the RBI has said it considered various options in consultation with the Government before deciding to introduce one billion Rs 10 banknotes on plastic substrate for field trials.
The five cities that have been identified for introduction of plastic notes are Jaipur, Bhubaneshwar, Kochi, Shimla and Mysore.
These cities have been identified because of their geographic and climatic diversity, the report said.
“The soilage is less in plastic compared to paper, and is more cost-effective as they last longer,” the RBI said.
TERI study
The report further said the RBI engaged The Energy and Resources Institute (TERI) to conduct a study on the carbon footprint of cotton-based banknote paper substrate vis-à-vis plastic-based substrate to estimate the overall environmental and life cycle assessment impact.
The result indicated that the polymer/plastic note (and the waste from production) could be granulated and recycled into plastic products such as compost bins, plumbing fittings and the like.
Australia, incidentally, was the first country to introduce polymer notes, way back in 1988.
Since then, over 30 countries have introduced them. Canada is the latest entrant.
