NRB stops printing polymer notes
 

19.05.09

Kathmandu

 
Nepal Rastra Bank (NRB) has stopped printing polymer notes after two press runs as they didn´t prove very popular with the public.
 

The central bank had introduced polymer notes of Rs. 10 denomination on Sept. 30, 2002 and again on Sept. 12, 2005. It has gone back to paper notes.
 

Ashwini Kumar Thakur, executive director of the central bank´s currency management department, said they had discontinued printing polymer notes after difficulties arose in their exchange because of unnecessary rumours.
 

"We found that a number of shops outside Kathmandu were refusing to accept polymer notes," he said.
 

After rumours spread that torn polymer notes would not be exchanged by the central bank, people became reluctant to accept them even though the NRB had clarified that damaged notes would be exchanged. According to an NRB official, the notes printed in 2002 were not of a very good quality, and the colour faded within a short time.
 

"This also may have made a bad impression on the people," Thakur said.
 

The central bank had gone for polymer notes thinking that its longer lifespan would save it from having to print new notes each year. The lifespan of polymer notes is estimated to be three times longer than that of paper notes.
 

"But the cost of printing is almost twice that for paper notes," he said. NRB had planned to issue polymer notes of other denominations if the Rs. 10 note became a success.
 

NRB is not sure if polymer notes will be reintroduced. "It is most unlikely to happen anytime soon," said Thakur.
 

However, he said that the central bank could introduce polymer notes of high denominations as they were virtually impossible to counterfeit. Counterfeit notes of Rs. 500 and Rs. 1000 denominations have surfaced at various times.
 

No Rs. 25, Rs. 250 notes
 

Nepal Rastra Bank (NRB) never reprinted notes of Rs. 25 and Rs. 250 denominations after introducing them in 1997 as they were not well received.
 

The central bank had printed paper notes of Rs. 25 denomination on April 11, 1997 and Rs. 250 on April 10, 1997. The central bank had printed 40 million pieces of Rs. 25 notes. Likewise, five million pieces of Rs. 250 notes were printed. Ashwini Kumar Thakur, executive director of NRB´s currency management department, said that NRB discontinued reprinting these notes as they could not be popular as expected.
 

He added that the central bank had no immediate plans to reprint these notes. The Rs. 250 notes were printed to commemorate the silver jubilee of ex-king Birendra Shah´s accession to the throne.