The Reserve Bank for long has been planning to launch plastic currency note after field trials.Replying to another question, Meghwal said it was informed by RBI in December 2015 that they have received some banknotes of Rs 1,000 without having security thread which were printed at Currency Note Press (CNP), Nashik, on paper supplied by Security Paper Mill (SPM), Hoshangabad."Major penalty chargesheet has been issued to the personnel concerned. The process of procurement has been initiated," Minister of State for Finance China printed packaging film Arjun Ram Meghwal said in a written reply in Lok Sabha to a query whether RBI proposes to print plastic currency notes in place of paper ones.

"It has been decided to print banknotes based on plastic or polymer substrate. The selected cities were Kochi, Mysore, Jaipur, Shimla and Bhubaneswar."Additional inspections have been introduced to ensure defect-free production," he said.New Delhi: Government today informed Parliament that a decision has been taken to print plastic currency notes and procurement of material has started. Meghwal further said action has been taken to strengthen quality procedure and online inspection system in manufacturing process and special training has been given to the persons concerned to avoid such types of mistakes in future.

In February 2014, the government had informed Parliament that one billion plastic notes of Rs 10 denomination would be introduced in a field trial in five cities selected for their geographical and climatic diversity.Plastic notes have an average life span of about five years and are difficult to imitate.An enquiry has been initiated by Security Printing and Minting Corporation (SPMCIL) and the units involved (SPM and CNP). Such notes were first introduced in Australia to safeguard against counterfeiting. Also, currency notes made of plastic are cleaner than paper ones. Disciplinary proceedings have been initiated as per departmental rules," the minister said