RBI Plans to Introduce Polymer Currency Notes by FY28

Introduction of Polymer Notes

Mumbai, Aug 5: Sanjay Malhotra, the Governor of the Reserve Bank of India (RBI), announced on Wednesday that the central bank aims to roll out polymer currency notes by the fiscal year 2028. Currently, field trials are being conducted to evaluate their effectiveness prior to a wider release.

During a media briefing following the Monetary Policy Committee (MPC) meeting, Malhotra confirmed that the pilot program for these polymer banknotes is ongoing.

He stated, "We are still in the pilot phase for polymer notes," emphasizing the importance of testing the currency before it is made available to the public.

Malhotra also mentioned that the RBI will analyze the results from these trials before making a decision regarding broader circulation. The target for introducing polymer notes is set for FY28.

This announcement follows the Finance Ministry's recent communication to Parliament, which revealed that the government has sanctioned the RBI's initiative to conduct field trials for polymer notes in denominations of Rs 10 and Rs 20.

The plan includes issuing one billion pieces each of Rs 10 and Rs 20 polymer notes to evaluate their durability and suitability for Indian conditions.

The RBI has asserted that polymer notes are more resilient than traditional paper notes, potentially lowering replacement costs, especially for lower denominations that experience frequent circulation and wear.

Additionally, polymer notes can feature advanced security measures, such as transparent windows and improved anti-counterfeiting technologies.

The government has clarified that there are no current plans to completely replace paper currency; if polymer notes are introduced, they will coexist with existing paper banknotes.

Any decision regarding the broader adoption of polymer notes will depend on the outcomes of the field trials and the operational evaluation of these notes under various climatic and usage conditions throughout the country.