Now Reading: Government approves field trials of polymer ₹10 and ₹20 notes
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Government approves field trials of polymer ₹10 and ₹20 notes
Finance Minister Nirmala Sitharaman told the Rajya Sabha on August 11 that the government has approved the Reserve Bank of India’s proposal to introduce one billion polymer banknotes each of ₹10 and…
The Story in Brief
Finance Minister Nirmala Sitharaman told the Rajya Sabha on August 11 that the government has approved the Reserve Bank of India’s proposal to introduce one billion polymer banknotes each of ₹10 and ₹20 for field trials. The plastic notes will be issued alongside existing paper currency, not replace it.
The procurement process is at an initial stage, so no launch timeline can be given yet, Sitharaman said. RBI governor Sanjay Malhotra had earlier indicated a rollout at the start of the next fiscal year if the pilot succeeds. The central bank floated a global expression of interest for polymer substrate in July.
The Indian Opinion
The usual social media panic, that paper currency will be withdrawn overnight, has already forced a government clarification. Polymer notes are being tested alongside paper, not instead of it, for small denominations that wear out fastest. The real test is not durability but cost: printing one billion notes of ₹10 and ₹20 will cost crores. Will the longer life of plastic actually save public money, or simply shift the expense from replacement to production? The RBI’s field trial data, not speculation, should answer that.
Sources (3): thehindubusinessline.com, livemint.com, rediff.com
This story was synthesised by AI from the 3 sources linked above.
Updated: this story now draws on 3 sources.
