Explained: Why RBI is reviving plastic (polymer) currency note trials after 15 years

📌 Summary:

• An RBI subsidiary (BRBNMPL) floated a tender for 3.4 crore polymer sheets to print currency notes — reviving a plastic-note trial ~15 years after a 2012 attempt that went nowhere
• The tender calls the 3.4 crore sheets an "immediate requirement"; if field trials succeed, larger quantities will follow — signalling more momentum this time
• 2009-12 history: RBI invited bids for 100 crore Rs 10 plastic notes for a field trial in five cities (Kochi, Mysuru, Shimla, Jaipur, Bhubaneswar — different climatic zones); "technical infirmities" stalled it
• Core benefit is durability: polymer notes last 2-6 times longer than cotton/paper notes; smaller denominations wear out faster
• Longer life cascades into benefits: fewer notes manufactured, lower printing/distribution/destruction costs (though one plastic note costs more than one paper note), and environmental gains
• Context: for every four new paper notes issued yearly, RBI must destroy three old ones — plastic reduces this churn
• A TERI "Life Cycle Impact Assessment" (2013) found replacing cotton notes with plastic yields "significant environmental benefits"; polymer waste can be recycled into compost bins, plumbing fittings, etc.
• Global adoption: first issued by Australia (1988), now used in 50+ countries including UK, Canada, New Zealand, Thailand, Vietnam, Malaysia, Singapore

🎯 UPSC Relevance: GS3 Economy — currency management, cost efficiency and sustainability in monetary systems; role of the RBI and its note-printing bodies.

📝 Prelims Facts:

• BRBNMPL and SPMCIL are the currency-printing bodies (BRBNMPL is an RBI subsidiary)
• Australia was the first country to issue polymer notes (1988); 50+ countries now use them
• Indian paper notes are made from 100% cotton
• Polymer notes last 2-6 times longer than paper notes

🔑 Key Term: Polymer (plastic) banknote — a currency note printed on a thin plastic film with embedded security features, more durable and recyclable than cotton-based paper notes.