RBI issues alert against prepaid payment instruments by illegal entities
The Reserve Bank of India (RBI) on Thursday cautioned the public against Prepaid Payment Instruments issued by unauthorised entities.
The government on Friday said the RBI has been authorised to conduct field trials of plastic notes of Rs.10 that have a longer life span.
In a written reply in the Lok Sabha, Minister of State for Finance Arjun Ram Meghwal said "it has been decided" to conduct a field trial with plastic banknotes at five locations of the country.
"Approval for procurement of plastic substrate and printing of bank notes of Rs.10 denomination on plastic banknote substrates has been conveyed to the RBI," the minister said.
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He further said plastic notes are expected to last longer than cotton substrate based banknotes.
Over the years, central banks across the world have been exploring different solutions like plastic notes and other developments in banknote substrates for extending the life cycle of banknotes.
The minister also said an inter-disciplinary Standing Committee on Cyber Security has been constituted to review the threats inherent in the existing and emerging technology and suggest appropriate policy interventions to strengthen cyber security and resilience.
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