RBI targets rollout of polymer currency notes by FY28: Governor Malhotra
Mumbai, Aug 5
Reserve Bank of India Governor Sanjay Malhotra on Wednesday said the central bank is targeting the introduction of polymer currency notes by FY28 with field trials currently underway to assess their performance before a broader rollout.
Speaking to IANS 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 further said the RBI is targeting the circulation of polymer notes by FY28.
The remarks come days after the Finance Ministry informed Parliament that the government has approved the RBI's proposal to conduct field trials of polymer currency notes in the Rs 10 and Rs 20 denominations.
According to the government, the central bank plans to issue one billion pieces each of Rs 10 and Rs 20 polymer notes as part of the pilot programme to assess their durability and suitability under Indian conditions.
The RBI has maintained that polymer banknotes are more durable than conventional paper notes and could help reduce replacement costs, particularly for lower denominations that witness high circulation and wear and tear.
Polymer notes also allow the incorporation of advanced security features, including transparent windows and enhanced anti-counterfeiting elements.
The government has clarified that there is currently no proposal to replace paper currency entirely. Polymer notes, if introduced, would circulate alongside existing paper banknotes.
The RBI has also stated that any decision on wider adoption would depend on the outcome of the field trials and operational assessment of the notes under varied climatic and usage conditions across the country.
--IANS
saurabh pandey/ag
— IANS
Reader Comments
This is a welcome step, but will the smaller shops and street vendors accept them easily? And what about the vending machines and auto meters that need to be calibrated for new notes? The RBI should think about the transition costs for the common man too.
Polymer notes are the future! Many countries like Australia and Canada have been using them for years. With advanced security features, they will definitely help curb fake currency circulation. Kudos to RBI for taking this initiative. 👏🇮🇳
I hope the RBI has tested these notes thoroughly in Indian conditions - the heat, humidity, and rough handling. We have a lot of rural areas where notes are folded, stapled, and kept in sweaty pockets. If polymer notes crack or tear like some imported ones do, it'll be a waste of public money.
A practical concern - will these polymer notes be lighter and easier to carry? Also, I hope the RBI ensures that ATMs and cash deposit machines are upgraded before the full rollout. There's nothing worse than standing in a queue and finding the machine can't process your notes!
Interesting, but I recall the 2016 demonetization chaos. The RBI should make sure the supply chain and public awareness are in place before any big rollout. If it's just going to be a small pilot for now, that's fine. Let them test it properly. Better safe than sorry!
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