Explained: Which Material Is Used To Make Indian Currency Notes, No It's Not Paper!

You must have held a currency note in your hand thousands of times in this lifetime. Yet, have you have ever wondered what material is the currency note made of?

But, why cotton?

It is commonly believed to be made of paper but that is completely untrue. The paper doesn't have high longevity, so it is not used. Then, what is used? Cotton. Yes, you read that right. It is used to make currency notes because it is more sustainable and long-lasting.

According to the Reserve Bank of India, the note uses 100 per cent cotton. Cotton is stronger than paper and they don't tear easily. Cotton is used to make currency notes not only in India but in many other countries as well.

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How is cotton turned into paper-like note?

Now, you may wonder how cotton is turned into a paper-like currency note. The answer to that question lies in a special formula used by the manufacturers. Cotton fibre contains fibre called linen and banknotes are made from cotton paper which is a mix of 75 percent of cotton and 25 percent of linen.

After this formula is made, cotton is mixed with a gelatin adhesive solution that makes them last longer. Indian notes have the most security features, which allows counterfeit notes to be easily identified. The design of Indian currency notes changes from time to time.

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What are other countries using?

Europe

According to Royal Dutch Kusters, in Europe the so-called comber noil are used for currency notes. Comber Noil refers to the short and undesired fibers that are rejected and removed during the combing process in spinning. The true ratio of cotton, linen and other materials used in the currency notes are kept secret by banks and can vary between countries.

United States

The United States also uses a similar cotton to linen ratio for its currency notes. According to the Bureau of Engraving and Printing, US currency notes are made up of 75 percent of cotton and 25 percent of linen. This implies that there are three-fourths of a pound of cotton in each pound of dollar bills. This same source also mentions that there are 454 bills in a pound of currency.

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Russia

The 1000-ruble banknote is printed on white high-quality cotton paper. Chaotically embedded in the paper are protective fibres of light-green and red colour, fibres with alternating red and yellow sectors, as well as a vertical security thread with repeated text seen in the transparent light.

How do new notes make it to the market?

As per Section 22 of the Act, the Reserve Bank has the sole right to issue banknotes in India. In consultation with the Reserve Bank, the Central Government and other stakeholders, the number of banknotes required by denomination is estimated in a year and demands for supply of banknotes with various currency printing presses.

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What happens to damaged notes?

The Reserve Bank provides good quality banknotes to the public in terms of its clean note policy. Keeping this objective in mind, banknotes withdrawn from circulation are checked and reissued to those which are suitable for circulation while others (dirty and torn) are destroyed so that the quality of banknotes in circulation is maintained.

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