Polymer currency: Govt approves 2 billion banknotes for field trials in Rs 10, Rs 20 denominations
New Delhi, Aug 11
The government has approved a proposal to introduce one billion polymer banknotes each in Rs 10 and Rs 20 denominations for field trials, Parliament was informed on Tuesday.
In a written reply to the Rajya Sabha, Finance Minister Nirmala Sitharaman said the Reserve Bank of India (RBI) -- based on the recommendation of its central board -- had submitted the proposal to the government under Section 25 of the RBI Act, 1934.
The proposal also envisages regular issuance of polymer banknotes in the two denominations if the field trials are successful.
"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 minister said.
She added that the RBI has informed the government that the procurement process is currently at an initial stage.
Consequently, the timeline for introduction of the polymer notes and the expenditure involved cannot yet be determined.
Earlier this month, RBI Governor Sanjay Malhotra said the central bank was targeting the launch of polymer currency notes at the beginning of the next financial year.
Responding to IANS question at the post-Monetary Policy Committee (MPC) outcome media briefing, Malhotra said the pilot programme for polymer banknotes is still in progress.
"There is still a pilot going on for polymer notes," the RBI Governor said.
"We will test the currency before bringing it to the market," he told IANS.
The RBI Governor also indicated that the central bank will evaluate the results of the field trials before taking a final decision on wider circulation.
Malhotra has said the RBI is targeting the circulation of polymer notes by FY28.
— IANS
Reader Comments
Good move but I'm a bit skeptical. In India, where humidity and heat are extreme, polymer notes might stick together or melt in some regions. Also, what about the cost? Will this increase the expense of printing? Need more clarity on this.
This is great! Polymer notes are harder to counterfeit and stay clean. I work at a bank and see how dirty old notes get. Imagine not having to worry about torn notes or them getting soggy in the rain. Bring it on! 🇮🇳
Interesting to see India moving towards polymer banknotes. I've used them in Australia and they work well. But the key will be the field trials - especially in rural areas where notes are folded, kept in wallets, and exposed to heat. Hope RBI does thorough testing before full rollout.
Honestly, the transition might be tricky. Small vendors and daily wage workers rely on low-denomination notes. If the initial supply is limited, could create temporary shortage issues. But with proper planning, this could be a revolutionary step. Let's see how the trials go. 🤞
As someone from Mumbai, I can tell you notes get ruined in monsoon! Polymer notes will be a blessing. But I hope they don't cost too much to produce. Also, will ATMs be able to handle them properly? Need to see if the machines are updated.
D We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.