HP among five pilot states to get plastic currency notes

  • HT Correspondents, Hindustan Times, Shimla
  • Updated: May 15, 2014 21:29 IST

Himachal Pradesh figures amongst the five states chosen by the Reserve Bank of India for the introduction of plastic `10 currency notes on a pilot basis, the apex bank's governor Raghuram Rajan said here on Thursday. He added the plastic notes would be launched in Shimla, Jaipur, Bhubaneswar, Mysore and Cochin.

He said that due to varying climatic conditions and geographical locations, plastic notes will be introduced on a pilot basis. Plastic notes have a longer life than paper ones and may help stop counterfeiting, he added.

Lauding Himachal Pradesh for its good per capita income, Rajan said, “There is a bank branch for every 3,009 people, but in sparsely-populated regions, financial inclusion and providing banking services are a problem. As this a hilly state, all-weather connectivity is a major issue, and we are working on it. As the mobile technology is the only all-weather technology, the RBI is considering deploying banking correspondents using mobile technology. It will help us reach remote areas.”

Later, interacting with the students at the Himachal Pradesh University, he claimed the global slowdown was the main cause of the current slowdown in India's economic growth, adding that following a tight monetary policy was the only way to control inflation. He added that while the RBI was making efforts to contain inflation, it depended largely on the monsoons.

Rajan praised the vegetable growers in Himachal, saying their efforts to grow vegetables when production was not possible elsewhere, especially in summer, helped contain inflation.

Responding to a question on the Aadhaar card scheme, Rajan said linking the banking system with Aadhaar would help keep track of borrowings and prevent defaulters from being able to borrow again.

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