Thursday, December 16, 2010

Government planning to launch plastic currency

The Government of India is planning to introduce plastic currency in India very soon. Plastic currency is already in practical use in countries like Australia and New Zealand.

"We are seriously considering introducing plastic currency notes in the Indian economy to check the fake currency problem and also for their longevity," Subbarao said while interacting with students of Ranchi University.

The main reason why the government of India is putting efforts to introduce plastic currency in India is to check menace of fake notes. The circulation of these fake notes is not good for the economy.

In recent past there are also cases of issuing of fake notes by the banks or from the ATM. RBI has given assurance that to check this problem they will take appropriate actions very soon.

"RBI is organising several outreach programmes in association with other banks to reach the rural population and the objective is to provide core banking facilities in all the panchayats of the country,"subbarao said

He also said that there is a huge potential of banking sector to grow , as there is still a large rural population that can be included . he furtherly added that our’s is a very fast growing economy and we can even suppress china with the inclusion of rural population.

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