Context: A review of innovations to realise the true potential of the Indian currency notes in circulation.
Background
Changes in anvil: 160 years since paper currency introduced in 1861, digital payments are a gaining currency, and a central bank digital currency is around the corner.
Paper currency still relevant: Notes in circulation soon to cross Rs.30 trillion and approach double pre-demonetisation level.
Wider acceptability: Physical currency is recognised by the poor and rich in villages and metros.
According to the 2020 International Association of Currency Affairs Award, Indian paper currency lags in capturing the country’s ethos, aspirations, and rich cultural heritage.
A review of potential innovations
Incorporate strong security features: E.g. hologram doorways, fluorescent images, perforated digits, rolling colour patches, shifting and reversing digits, and enhanced print quality, etc.
Improve recognisability: Including accessibility to visually challenged, increasing the public confidence.
Enhance functionality: Rework guarantee clause in currency, which has long outlived its utility.
Represent convertibility to fiat currency model: the US dollar declares ‘this note is legal tender for all debts, public and private.
Decluttering measure related to languages: Of the 22 official languages, the last four official languages — Bodo, Dogri, Maithili, and Santhali — not in currency due to space constraints.
All languages except English and Hindi could be dropped and limited to micro lettering.
Enhance durability: Polymer notes have the potential for a lower carbon footprint and longer life.
Representing country, capturing the imagination and celebrating rich diversity: Look beyond Mahatma Gandhi design, including likes of Srinivasa Ramanujan, Jamshetji Tata, Jagdish Chandra Bose, CV Raman, Homi J Bhabha, Rabindranath Tagore, Premchand, Ustad Allauddin Khan, Uday Shankar etc.
Incorporate principles of universal design: Portrait orientation, as in Swiss franc or Argentinian peso.
Procedural reforms: Central bank currency should be the central bank’s responsibility from concept and design to delivery with only limited consultation role of government.