Government approves field trials for Rs 10 and Rs 20 polymer banknotes

The Union government has granted approval for the Reserve Bank of India to conduct field trials for polymer banknotes in denominations of Rs 10 and Rs 20. Finance Minister Nirmala Sitharaman confirmed the decision in a written reply to the Rajya Sabha, noting that the proposal was submitted under Section 25 of the Reserve Bank of India Act, 1934. The plan involves the issuance of one billion pieces for each denomination, totaling two billion notes for the initial testing phase.

The introduction of polymer currency is aimed at enhancing the longevity of banknotes and reducing the prevalence of damaged paper currency in circulation. These polymer notes are expected to coexist with existing paper currency during the trial period. Procurement processes for the new notes are currently in the initial stages, and the government will evaluate the success of these field trials before determining whether to proceed with a full-scale rollout.