To fight counterfeit currency, the government is planning to print polymer notes which are supposedly difficult to replicate. Recently, in a written reply in Lok Sabha, Minister of State for Finance, Arjun Ram Meghwal, stated that the government is already procuring necessary materials for produce these notes. 

 

The production cost of plastic notes is four times higher than the paper notes, but it is hard for forge and last longer. 

 

This move came after the Modi government banned high value ₹500 and ₹1000 notes to recover black money and to stop counterfeit currency. Ironically, as new ₹2000 and ₹500 rupee are getting circulated, there are multiple reports of counterfeit new currency notes that are grabbing news headlines. 

 

The central government is encouraging people to adopt digital methods of financial transactions to survive in the cash crunch situation and to make financial activities more transparent for tax purposes. 

 

Also, the government is viewing plastic notes as an effective method to stop counterfeiting. 

 

Earlier in February 2014, the UPA government disclosed in the Parliament that ₹10 polymer notes in total one billion value would be introduced on trial basis in Mysore, Kochi, Shimla, Jaipur, and Bhubaneswar. Soon after the country witnessed another election and this proposal could not be executed.