Economy, asked by beantkaurluthra8726, 1 year ago

Imporatnce and features of plastic money?

Answers

Answered by liket2828
2
Security: The most important reason behind the launch of plastic currency note is that it is to prevent counterfeiting i.e. fake currency. Paper notes are easier to imitate and when in wrong hands leads to negative impact on economy. In addition to this, fake paper notes are majorly printed and are in use for funding terrorism, which has since ages affecting India’s internal security. So basically it would help India’s economy in the long run.

In comparison, polymer notes have security features which is not possible in paper notes. These features can be detected by individuals, machines, and authority which issues the notes. Reproducing polymer notes through photocopy or scanning is very difficult.

Long life: Plastic currency notes have longer life typically 5 years. In comparison paper notes may or may not have longer life unless and until they are preserved or kept unused. You can take example of visiting card made of plastic and paper. Plastic ones are difficult to tear and have longer life as dirt can be easily removed. You might have come across a situation when shopkeeper rejects to accept a torn paper currency note. This will end once plastic money comes to use.

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