Question map
The Government of India and Reserve Bank of India have decided to introduce 1 billion pieces of Rs. 10 notes in polymer/ plastic on a field trial basis. Which of the following is/are the objectives behind this move ? 1. Increase of the lifetime of the notes 2. Combating counterfeiting 3. Reducing the cost of minting of currency Select the correct answer using the code given below :
Explanation
The Government of India and the RBI initiated a field trial for 1 billion pieces of Rs. 10 polymer notes primarily to enhance the durability and security of low-denomination currency. Polymer notes are known to have a significantly longer lifespan compared to traditional cotton-based paper notes, which reduces the frequency of replacement and long-term environmental impact. Additionally, polymer substrates allow for advanced security features that are harder to replicate, thereby combating counterfeiting. While polymer notes have lower lifecycle costs due to their longevity, their initial production cost is higher than paper notes. Furthermore, the term 'minting' specifically refers to the production of coins, which are manufactured at government mints in Mumbai, Hyderabad, Kolkata, and Noida , whereas banknotes are 'printed' at currency presses . Therefore, reducing the 'cost of minting' is technically inaccurate in the context of banknotes.
Sources
- [1] Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 7: Money and Banking > CURRENCY NOTES PRINTING AND COINS MINTING > p. 163
- [2] Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 2: Money and Banking- Part I > 2.10 Money Supply > p. 53
SIMILAR QUESTIONS
Which one of the following is not a function of Reserve Bank of India ?
Indian Government Bond Yields are influenced by which of the following? 1. Actions of the United States Federal Reserve 2. Actions of the Reserve Bank of India 3. Inflation and short-term interest rates Select the correct answer using the code given below.
Which of the following are the sources of income for the Reserve Bank of India? I. Buying and selling Government bonds II. Buying and selling foreign currency III. Pension fund management IV. Lending to private companies V. Printing and distributing currency notes Select the correct answer using the code given below.