Money matters—life in plastic, it's fantastic

Times of India

01.01.01
PUNE

From barter to coins to smart-cards. Currency systems might have witnessed a million changes to traverse a millennium, but the currency for Y2K is like nothing seen or felt before.

It is designed to weather the elements. Yes, it lasts longer than paper, is more difficult to counterfeit and doesn't get all wrinkly in case you leave it in the pocket and it ends up in a washing machine. When worn out, plastic currency, a.k.a polymer notes, can be recycled into other plastic products. With the RBI in the process of introducing plastic currency, the new notes on the block promise to be resistant to moisture, sweat, oil, et al.

"The objective is to replace existing notes, which are prone to wear and tear. We are experimenting with Rs 10 polymer notes in simulated conditions. A similar experiment had been conducted in 1995, but the notes were found unsuitable for India's climate.

"This time, we are negotiating with an Australian firm which has perfected the manufacture of plastic currency," says RBI spokesperson Alpana Kilawala.

For the record, Australia issued the world's first plastic currency in 1988, a $10 note commemorating the continent's bicentennial.

"As shown by its successful adoption in Australia and Bangladesh, plastic currency is not only convenient for the consumer, it can also change the way our counting machines function," says State Bank of India assistant GM Hardayal. This brings us to the question of counterfeiters.

"It's still too early in the day to say whether plastic currency will be more difficult to counterfeit," reasons Hardayal, adding that, "Initially though, plastic currency should make life difficult for fakesters."

Cautions Ernst & Young's senior security expert G Kaliprasad, "Printing on polymer films is difficult, but not impossible. For instance, counterfeit paan masala packets involve the stamp on the polymer film being duplicated. The process, however, is more time-consuming than duplicating a paper currency note."

The sceptics, on their part, are worried about the prospect of polymer notes forcing retooling of currency-sorting/counting machines and an undermining of confidence in the rupee.

Besides, there are environmental concerns too. "Indian stores and, sometimes, banks don't accept torn notes. Hopefully, plastic currency will make people accept currency in any shape and size," says Anil Chopra, senior manager, Sita World Travels.

Going beyond credit cards, the phrase "paying in plastic" is all set to assume a new meaning. And the best word to describe a water, wrinkle and worry-free currency is, probably, fantastic.