New Delhi, May 29 -- The Reserve Bank of India (RBI) is set to reintroduce the idea of plastic currency notes, driven by surging demand, rising printing costs, and a sharp increase in soiled note disposal.

The RBI has revived discussions on introducing polymer (plastic) banknotes for public circulation, with the matter having been deliberated at the central bank's last two board meetings in Patna and Mumbai, Business Standard reported, citing multiple sources.

A pilot project to introduce plastic banknotes for public use is likely to be announced soon in light of the perceived advantages of reduced production costs and their longer durability.

"There are clear advantages in the cost of production of such notes compared to the paper not...