Polymer currency essential to solve counterfeit currency problem

- Polymer currency notes are advanced and more secure, last longer and do not deteriorate due to moisture and dirt.

Aiming to become a 5 trillion dollar economy, India should or will have to become self-sufficient in terms of its own currency. For this, switching to polymer currency notes may be a logical step, as it will help in solving the problem of counterfeit currency notes and is also a more reasonable option in the long run.

The government prints millions of new currency banknotes every year to replace torn, soiled, twisted or defaced currency notes. Currency banknotes printed on paper remain in circulation for a short period of time due to the limitations of the material used in them.

Similarly, our country continues to face the problem of counterfeit currency notes, which is a serious threat to economic security. An analysis of RBI's latest annual report shows that, compared to the previous financial year, Rs. 10, Rs. 20, Rs. 200 Rs. 500 and Rs. 2,000 denominations, there was a significant increase in the number of fake currency notes. A total of 230,971 fake currency notes were identified by banks and RBI during the financial year 2021-22.

Covering these aspects, the think-tank-Council for International Economic Understanding (CIEU) has released a research paper titled 'Making India Self-reliant' in Counterfeit Proof Currency. The report on key aspects of polymer currency stated that, considering India's national economic security and the role that currency banknotes play, it is important for the government to assess the possibility of introducing polymer banknotes like many other countries in the world.

India is the second largest producer of BOPP films in the world, which forms the substrate for polymer film, which is used for currency. Considering that the Indian polymer industry has developed capabilities to offer hi-tech films, the government should consider whether there are companies operating in the Indian market that have the potential to meet the indigenous needs.

This means that future capital expenditure to secure the paper required to create the currency can be saved to a large extent. If given proper incentives by the government, India also has the potential or potential to become a major center for exporting polymer currency notes to other countries of the world.

So far, around 76 countries have used polymer currency, including the UK, Singapore, Israel and the UAE. Australia was the first country to introduce polymer currency notes in 1988. By 1996, Australia had completely switched to this banknote.

Polymer notes are made using a more energy efficient manufacturing process, resulting in less impact on the environment. Being a non-porous material, the all-weather polymer note has the ability to withstand both high temperatures and cold temperatures. The introduction of polymer notes has brought important benefits to these countries, including reduction in counterfeit notes, longer note durability and minimal impact on the environment.

The introduction of polymers could be of considerable benefit to India. This will contribute to the 'Make in India' initiative, reduce our import dependency on paper and develop India as a technology hub for banknote technology.