Market is abuzz with discussions about plastic currency. If all goes well, you'll be able to use plastic or polymer notes in the New Year. The Reserve Bank of India has already swung into action to implement this. However, implementing this could face several challenges.

A senior official at a major public sector bank said the Reserve Bank of India's plan to introduce polymer notes would be significantly expensive because the cassettes used to hold cash in ATMs would need to be replaced. The banker added that polymer notes cannot be inserted into existing automated teller machines without replacing the cassettes. 

What are the objectives of introducing polymer notes?
First, it increases the lifespan of the notes. This is especially true for low-value notes, which are frequently transferred from one hand to another, causing them to deteriorate more quickly. These notes have been in use in many countries for over 30 years. They have found that these notes last three to four times longer than paper notes.

PC- India today