New Delhi: The Union government has approved a proposal from the Reserve Bank of India (RBI) to introduce one billion pieces each of ₹10 and ₹20 polymer banknotes for field trials, Minister of State for Finance Pankaj Chaudhary informed the Lok Sabha.
In a written reply to an unstarred question, the Minister said the RBI had recommended the proposal under Section 25 of the Reserve Bank of India Act, 1934. Regular issuance of polymer banknotes in the two denominations will be considered after successful completion of the field trials.
The government said international studies indicate that polymer banknotes have a significantly longer lifespan than paper banknotes. It added that the introduction of polymer notes is currently at a preliminary stage, and any impact on digital payments can be assessed only after their regular issuance. The reply noted that banknotes and digital payment systems are complementary payment tools.
The Minister also clarified that there is no proposal to replace existing paper currency with polymer banknotes. According to the RBI, polymer notes are proposed to be issued alongside paper substrate-based banknotes.
