Govt Approves 1 Billion Polymer Notes Each Of Rs 10, Rs 20 For Field Trials

Govt approves 1 billion polymer notes each of Rs 10 and Rs 20 for field trials; paper notes will continue alongside them.

The Finance Ministry said the procurement process is currently at an initial stage.

Source : IANS

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• New polymer notes will circulate alongside existing paper currency.

The government has approved the introduction of one billion polymer banknotes each of Rs 10 and Rs 20 for field trials, Finance Minister Nirmala Sitharaman informed the Rajya Sabha on Tuesday. The Reserve Bank of India (RBI), following a recommendation from its Central Board, had proposed the move under Section 25 of the RBI Act, 1934. If the trials are successful, polymer notes in both denominations may be issued regularly. The new notes will circulate alongside existing paper-based currency, while the procurement process remains at an initial stage.

Rs 10, Rs 20 Polymer Notes Approved

The RBI has proposed one billion pieces each of Rs 10 and Rs 20 polymer banknotes for field trials. The government has approved the proposal, paving the way for the initial testing of polymer currency in these two denominations.

The proposal was submitted by the RBI after a recommendation from its Central Board and under Section 25 of the Reserve Bank of India Act, 1934.

The move does not mean existing paper notes will be withdrawn. According to the RBI, polymer banknotes are proposed to be issued alongside paper substrate-based banknotes.

This means Rs 10 and Rs 20 paper notes will continue to circulate even if polymer versions are introduced.

When Will Plastic Notes Reach Public?

There is no confirmed timeline yet for when the new polymer notes will reach the hands of the public.

The Finance Ministry said the procurement process is currently at an initial stage. Because the process has only just begun, it is not possible at present to determine the exact timeframe for introducing polymer banknotes or the expenditure involved.

The government approval therefore marks the start of the process rather than an immediate rollout.

For now, paper currency remains in circulation, and there is no stated date for when the polymer versions will be available to the public.