Rs 10, Rs 20 polymer notes get field-trial nod: What will change from paper currency?
The Indian government has approved the Reserve Bank of India's plan to conduct field trials for polymer-based Rs 10 and Rs 20 banknotes. These notes are intended to be more durable than traditional paper currency, though both types will circulate simultaneously.
Why it matters
The transition to polymer currency could significantly reduce long-term printing costs and improve the lifespan of frequently used low-denomination notes.
India is set to trade in polymer banknotes soon, with the government approving the Reserve Bank of India’s proposal to release one billion pieces each of Rs 10 and Rs 20 denomination notes for field trials.The proposal, submitted by the RBI's central board under Section 25 of the Reserve Bank of India Act, 1934, seeks to introduce the polymer notes initially for field trials. Regular issuance of the two denominations has been proposed after the successful completion of the trials.Finance minister Nirmala Sitharaman, in a written reply to the Rajya Sabha on Tuesday, said, "The proposal has been approved by the government. As per the RBI, these polymer banknotes are proposed to be issued along with paper substrate-based banknotes."The RBI has said that the procurement process is currently at an initial stage.
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