This article is a direct result of the Demonetisation drive initiated by Mr. Narendra Modi, the Prime Minister of India and the introduction of the new paper Rs. 2000 note.
Our PM has been urging all sections of industry to not just “Make in India” but to use and adopt the latest technology for efficacy and efficiency. The one question that came unanswered in many discussions I’ve had was, “why have polymer notes not been used as replacement for the notified currency when a perfect opportunity presented itself?”
Is it because Polymer Currency is not seen as eco-friendly or are we resistant to change (no pun intended)?
The latest country to introduce polymer currency is Britain. People around Britain got their hands on the first polymer £5 notes issued by the Bank of England in September 2016. Discussions at the central bank over whether to replace the paper fiver with a tougher polymer version started much earlier in 2010. The plastic note that’s gone into circulation is smaller than the outgoing £5 note and features Sir Winston Churchill.
The Bank spent around £70 mn on the research, development and printing of the new banknotes. The team worked for years to develop its cutting edge security features, which include a see-through window. The £5 note is being printed by De La Rue, which also produces currency for countries such as Fiji, Mauritius and Guyana, as well as the UK passport and Microsoft’s certificate of authenticity.
So what are Polymer banknotes?
Polymer banknotes are made from a very thin, flexible, see-through plastic film, such as biaxially oriented polypropylene (BOPP) or polypropylene. Base print layers are added to the plastic for the purposes of durability, opacity and reducing static. Various security layers are added to the base foundation, which include the characteristic raised print or intaglio. Using polymers also means that security can be further beefed up with a clear plastic see-through window, something not possible with paper notes and the use of metameric inks.
Most paper currency worldwide, including India, is made from cotton paper with a weight of 80 to 90 grams per square meter. The cotton is sometimes mixed with linen, abaca or other textile fibres.
Polymer scores over paper on many parameters:
1. Shiny plastic doesn't get wet and dirty like paper.
2. Features like the see-through windows are difficult to copy, so it's harder for criminals to make fake notes.
3. Polymer won't tear as easily as paper, so the notes should last longer, 2.5 times longer. They're even expected to survive if they accidentally go into the washing machine, although they'd melt under extreme heat.
4. Polymer currency is also recyclable at the end of its lifetime.
The downsides are:
1. Polymer notes cost more to produce in the short-term, which could be a drawback for developing countries. The payback from their extra durability comes over time.
2. Polymer money is designed specifically to resist attempts at folding. Hence, those who use folding wallets or prefer to carry notes in their pocket will have a difficult time making do. Or land up with a permanent crease in the middle of the note.
3. Polymer notes are more slippery than paper and their slipperiness makes them harder to count by hand.
4. Polymer notes are incompatible with existing sorting, automatic payment and vending machines that deal with paper currency.
5. Polymer notes tend to get stuck together, when wet and making them difficult to pull apart. They could potentially lead to a consumer handing two bills stuck together instead of one, when making a purchase.
6. All the accompanying inks, coatings and applied features also have to last longer to meet the increased lifetimes of the notes. This includes inks that are visible under ultraviolet or infrared light, as well as those which are visible in normal circumstances.
Polymer notes were first issued as currency in Australia during 1988 (coinciding with Australia's bicentennial year). Their need was felt when forgeries of the Australian $10 note were found in circulation in 1967. The Reserve Bank of Australia was concerned about an increase in counterfeiting because colour photocopiers also went on sale to the general public in that same year.
Have a look at the latest Australian $5 note to see how much the technology has improved. Click to see video.
Today, more than 20 countries around the world already use polymer banknotes, including Scotland, Australia, New Zealand and Canada. As with any emerging technology, countries have adopted polymer notes in their own way: some have used it across the whole range of banknotes, while others have used it only for harder working denominations where durability is paramount.
It remains to be seen when we will see the 1st Indian polymer note. Recent articles have surfaced suggesting that the Indian Government is looking to introduce polymer notes. Will it be the hard working Rs 10 note or the high denomination Rs 500 note that has been counterfeited the most?
Our PM has been urging all sections of industry to not just “Make in India” but to use and adopt the latest technology for efficacy and efficiency. The one question that came unanswered in many discussions I’ve had was, “why have polymer notes not been used as replacement for the notified currency when a perfect opportunity presented itself?”
Is it because Polymer Currency is not seen as eco-friendly or are we resistant to change (no pun intended)?
The latest country to introduce polymer currency is Britain. People around Britain got their hands on the first polymer £5 notes issued by the Bank of England in September 2016. Discussions at the central bank over whether to replace the paper fiver with a tougher polymer version started much earlier in 2010. The plastic note that’s gone into circulation is smaller than the outgoing £5 note and features Sir Winston Churchill.
The Bank spent around £70 mn on the research, development and printing of the new banknotes. The team worked for years to develop its cutting edge security features, which include a see-through window. The £5 note is being printed by De La Rue, which also produces currency for countries such as Fiji, Mauritius and Guyana, as well as the UK passport and Microsoft’s certificate of authenticity.
So what are Polymer banknotes?
Polymer banknotes are made from a very thin, flexible, see-through plastic film, such as biaxially oriented polypropylene (BOPP) or polypropylene. Base print layers are added to the plastic for the purposes of durability, opacity and reducing static. Various security layers are added to the base foundation, which include the characteristic raised print or intaglio. Using polymers also means that security can be further beefed up with a clear plastic see-through window, something not possible with paper notes and the use of metameric inks.
Most paper currency worldwide, including India, is made from cotton paper with a weight of 80 to 90 grams per square meter. The cotton is sometimes mixed with linen, abaca or other textile fibres.
Polymer scores over paper on many parameters:
1. Shiny plastic doesn't get wet and dirty like paper.
2. Features like the see-through windows are difficult to copy, so it's harder for criminals to make fake notes.
3. Polymer won't tear as easily as paper, so the notes should last longer, 2.5 times longer. They're even expected to survive if they accidentally go into the washing machine, although they'd melt under extreme heat.
4. Polymer currency is also recyclable at the end of its lifetime.
The downsides are:
1. Polymer notes cost more to produce in the short-term, which could be a drawback for developing countries. The payback from their extra durability comes over time.
2. Polymer money is designed specifically to resist attempts at folding. Hence, those who use folding wallets or prefer to carry notes in their pocket will have a difficult time making do. Or land up with a permanent crease in the middle of the note.
3. Polymer notes are more slippery than paper and their slipperiness makes them harder to count by hand.
4. Polymer notes are incompatible with existing sorting, automatic payment and vending machines that deal with paper currency.
5. Polymer notes tend to get stuck together, when wet and making them difficult to pull apart. They could potentially lead to a consumer handing two bills stuck together instead of one, when making a purchase.
6. All the accompanying inks, coatings and applied features also have to last longer to meet the increased lifetimes of the notes. This includes inks that are visible under ultraviolet or infrared light, as well as those which are visible in normal circumstances.
Polymer notes were first issued as currency in Australia during 1988 (coinciding with Australia's bicentennial year). Their need was felt when forgeries of the Australian $10 note were found in circulation in 1967. The Reserve Bank of Australia was concerned about an increase in counterfeiting because colour photocopiers also went on sale to the general public in that same year.
Have a look at the latest Australian $5 note to see how much the technology has improved. Click to see video.
Today, more than 20 countries around the world already use polymer banknotes, including Scotland, Australia, New Zealand and Canada. As with any emerging technology, countries have adopted polymer notes in their own way: some have used it across the whole range of banknotes, while others have used it only for harder working denominations where durability is paramount.
It remains to be seen when we will see the 1st Indian polymer note. Recent articles have surfaced suggesting that the Indian Government is looking to introduce polymer notes. Will it be the hard working Rs 10 note or the high denomination Rs 500 note that has been counterfeited the most?
