Government approves field trials of one billion polymer notes each in Rs 10 and Rs 20 denominations, while clarifying that paper currency will continue alongside the new notes
New Delhi: The Centre has approved the Reserve Bank of India’s (RBI) proposal to conduct field trials of one billion polymer banknotes each in the Rs 10 and Rs 20 denominations, paving the way for the possible introduction of longer-lasting currency notes.
According to a written reply by the Ministry of Finance in the Lok Sabha, the RBI proposed issuing polymer notes for field trials and, subject to their success, for regular circulation. The government has approved the proposal, which remains in its preliminary stage.
The RBI informed the government that international studies show polymer banknotes have a significantly longer lifespan than paper notes. It added that the impact on digital payments, if any, can only be assessed after regular issuance, while emphasising that cash and digital payment systems are complementary.
The government also clarified that there is no proposal to replace paper currency with polymer notes. Instead, polymer and paper banknotes will circulate together if the trials are successful.
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