Government Approves RBI Field Trials of Rs 10 and Rs 20 Polymer Banknotes

The Government of India (GoI) approved the Reserve Bank of India (RBI) proposal to conduct field trials of one billion polymer banknotes each in the Rs 10 and Rs 20 denominations. The proposal, worth about Rs 3,000 crore, was sent by the RBI on the recommendation of its Central Board under Section 25 of the RBI Act, 1934, which deals with the design, form and material of banknotes. Polymer (plastic) banknotes are printed on a non-fibrous, non-porous polymer substrate instead of conventional cotton-based paper, making them more durable, waterproof and harder to counterfeit. The RBI will test the notes under different climatic and usage conditions for durability, security features and public acceptance; regular issuance will begin only after successful evaluation. The government clarified the polymer notes are an additional option and there is no proposal to replace existing paper notes.