RBI to Test Polymer Banknotes: Rs 10 and Rs 20 Trials Approved

Approval for Polymer Banknote Trials

The Finance Ministry of India has given the green light for the Reserve Bank of India (RBI) to initiate field trials for new polymer banknotes of Rs 10 and Rs 20, as announced by Minister of State for Finance, Pankaj Chaudhary, in the Lok Sabha. A total of one billion notes for each denomination will be produced for these trials.

The government has emphasized that these polymer notes will coexist with the existing paper currency rather than replace it. To support this initiative, Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL) has issued a global tender for 68,000 reams of polymer substrate, with the deadline for bids set for August 18.

According to the Minister, the RBI has indicated that international research shows polymer banknotes have a significantly longer lifespan compared to traditional paper notes. Currently, the rollout of polymer banknotes is in its initial stages, and any potential effects on digital payment systems will only be evaluated after these notes are regularly issued. The RBI maintains that both banknotes and digital payment methods serve as complementary options for consumers, and there are no plans to eliminate paper currency in favor of polymer alternatives.