Addressing reports regarding the possible introduction of polymer notes, Malhotra acknowledged that there is some truth to the speculation but clarified that the RBI has not yet reached any conclusion. He stated that the proposal remains under consideration and that the central bank is carefully examining all aspects before deciding whether it would be worthwhile to implement.
“As far as polymer notes are concerned, the proposal is under consideration. As soon as any decision is taken on it, we will inform you,” Malhotra said.
The Governor emphasized that the RBI is evaluating both the potential benefits and challenges associated with polymer currency. According to him, the assessment is still at a preliminary stage, and the central bank is weighing the advantages and disadvantages before determining the future course of action.
Alongside the review of polymer notes, Malhotra reassured the public that adequate currency is available across the banking system. He stated that the RBI remains fully prepared to address any localised shortages of cash and will take swift measures wherever necessary.
“If there is a shortage, we will certainly ensure that the shortage is met,” he said.
Highlighting the availability of sufficient currency stock for automated teller machines and bank branches, the Governor said the central bank would ensure rapid replenishment in areas facing temporary shortages.
“Our full effort will be to ensure that wherever there is a shortage of currency in one or two places at automated teller machines, we will deliver currency there promptly and at a rapid pace,” Malhotra added.
The remarks come as the Reserve Bank of India continues its assessment of the feasibility of polymer currency notes while maintaining that adequate cash remains available for distribution throughout the banking system. The ongoing review underscores the central bank’s effort to evaluate innovative currency solutions without compromising the smooth availability of cash across the country.
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