New Delhi, Aug 12 (NVI) The government of India has paved the way for introduction of currency notes in Polymer (Plastic) form in the country by approving a proposal of the Reserve Bank of India (RBI) in this regard.
The RBI has proposed introduction of 2 billion polymer banknotes for field trials.
These will include one billion ₹10 notes and one billion ₹20 notes.
The proposal was submitted by the RBI’s Central Board under Section 25 of the RBI Act, 1934 and the government has approved it, Finance Minister Nirmala Sitharaman informed the Rajya Sabha.
The approved plan allows for regular issuance of polymer banknotes in the two denominations if the field trials are successful.
The RBI has said the polymer notes are proposed to circulate alongside existing paper substrate-based banknotes, rather than immediately replacing them.
Sitharaman said the procurement process is currently at an initial stage, meaning the government has not yet determined the exact timeline for introduction or the expenditure involved.
The RBI will assess the performance of the notes during field testing before taking a final decision on wider circulation.
RBI Governor Sanjay Malhotra has indicated that the central bank is targeting the circulation of polymer currency by FY28.
He said the pilot programme remains underway and the notes will be tested before being introduced into the market.
The move could eventually expand the use of polymer currency in India if the field trials demonstrate satisfactory results. (NVI)
