Governor Malhotra Gives Update on Plastic Money and Security Features

Speaking at a press briefing following the latest monetary policy announcement, Governor Sanjay Malhotra provided a comprehensive update on the status of plastic, or polymer, banknotes. He explained that the RBI’s pilot project is still in the data‑collection stage, with detailed analysis scheduled before any large‑scale issuance.

The governor highlighted that polymer notes can incorporate sophisticated security elements not easily achievable on paper. Features under consideration include a clear window with embedded micro‑printing, colour‑shifting inks, and tactile strips for the visually impaired.

Malhotra also addressed cost considerations, noting that although polymer notes have a higher upfront production expense, their extended lifespan could lead to long‑term savings by reducing the frequency of re‑printing and replacement.

Finally, he assured the public that the existing paper money will remain in circulation alongside the new polymer notes, ensuring a smooth transition without disrupting daily cash transactions.