RBI Plans Long-Lasting Polymer Currency Notes Launch From Next Financial Year

Speaking to reporters during the customary briefing after the monetary policy review, Malhotra said polymer currency notes have lasted for more than 30 years in some jurisdictions and could help improve durability.

"We are targeting that they are in circulation, if everything goes as per plan, in the beginning of the next financial year," Malhotra said.

Malhotra also said the Reserve Bank of India’s next decision on the key aspect of interest rates and the policy stance will depend on incoming data. He underlined that the central bank’s primary focus remains aligning headline inflation with its target of 4 per cent over the medium term.

Commenting on the Foreign Currency Non-Resident (Bank) scheme, Malhotra said the fund flows under the scheme have been "robust" and the RBI expects healthy movement of funds until the closure of the limited-period scheme.

When asked whether the central bank was considering an early closure of the scheme due to the cost that the RBI is committed to bear for the fund inflows, Malhotra said there is no such proposal at this point of time.

Responding to a question on the rupee not appreciating as intended despite strong foreign inflows, Malhotra said further strengthening of the rupee is possible if geopolitical tensions de-escalate.

He added that it will be the RBI’s endeavour to ensure that the trajectory of the rupee remains orderly.