The government has approved the field trial of ₹10 and ₹20 polymer banknotes. A total of 100 crore polymer, or plastic, notes of each denomination will be issued. Finance Minister Nirmala Sitharaman provided this information in a written reply in the Rajya Sabha on Tuesday.
To Be Regularly Issued After Trial
The RBI had proposed a field trial of 100 crore polymer notes each of ₹10 and ₹20. After the trial is successful, polymer notes of both denominations will be issued regularly. They will circulate alongside the existing paper notes.
What Are Polymer Notes
Polymer notes are printed on a special type of plastic material. They are less affected by water, dust and dirt and can last longer than paper notes. They are already being used in several countries, including the United Kingdom, Australia and Canada.
Check on Counterfeit Notes Too
Modern security features can be incorporated into polymer notes, which can help prevent counterfeit notes. Their longer lifespan can also reduce the need for frequent printing of notes. In FY25, the RBI spent ₹6,372.8 crore on printing paper currency. After polymer notes are introduced, existing paper notes will not be discontinued. Both types of notes will circulate together. The government will implement this in phases.
Proposal Had Come Earlier Too
India had first attempted to introduce polymer notes in 2012, but the plan could not move forward due to technical reasons. Now, the RBI has once again taken an initiative in this direction. Polymer banknotes have already been used in more than 60 countries around the world. Australia, Canada, the United Kingdom and New Zealand are among the major countries using them.
Three Major Demonetisation Exercises in India
India has taken major decisions to discontinue high-denomination notes in 1946, 1978 and 2016. In 2016, the old ₹500 and ₹1,000 notes were discontinued. In 2023, the RBI decided to withdraw ₹2,000 notes from circulation. Now, the field trial of ₹10 and ₹20 polymer notes is set to take place. Based on the results of the trial, a further decision will be taken regarding their regular use.