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

31 July 2026National

The Finance Ministry approved the Reserve Bank of India's (RBI) proposal, under Section 25 of the RBI Act, 1934, to issue 100 crore (1 billion) pieces each of Rs 10 and Rs 20 polymer banknotes - about 2 billion notes in total, worth roughly Rs 3,000 crore - for field trials. The approval was conveyed to Parliament by Minister of State for Finance Pankaj Chaudhary. The government clarified that paper currency is NOT being phased out; polymer notes will circulate alongside existing paper notes. Polymer (plastic) banknotes are more durable, harder to counterfeit and last significantly longer than paper. If trials succeed, the RBI will issue polymer notes in these denominations regularly.

Static GK

RBI established 1 April 1935 | HQ: Mumbai | Governor (2026): Sanjay Malhotra | Currency issued under Section 25, RBI Act 1934 | Rs 1 note is issued by Ministry of Finance (signed by Finance Secretary), all others by RBI

⚡ Quick Revision

The Finance Ministry approved RBI's plan to issue 1 billion pieces each of Rs 10 and Rs 20 polymer banknotes for field trials, under Section 25 of the RBI Act, 1934. • Polymer notes will circulate alongside paper currency - paper notes are not being phased out.

ShareWhatsApp Telegram

More Economy Current Affairs

India to Use Producer Price Index (PPI) for GDP Deflation

In July 2026, the Ministry of Statistics and Programme Implementation (MoSPI) announced plans to use the output Producer Price Index (PPI) as a deflator for quarterly and annual GDP estimates, replacing the Wholesale Price Index (WPI) wherever applicable. The PPI series was released by the Department for Promotion of Industry and Internal Trade (DPIIT) in June 2026. The revised GDP series has updated the base year to 2022-23 (from 2011-12) and adopted double deflation, which separately adjusts output and input prices. MoSPI plans to introduce the new PPI-based methodology with GDP estimates for the April-June quarter of 2026-27, while the CPI continues for specific granular items.

GK ByteA deflator converts nominal GDP to real GDP by removing the effect of price changes | WPI is released by the Office of the Economic Adviser, DPIIT | CPI is released by the NSO under MoSPI | New GDP base year: 2022-23

📅 30 Jul 2026EconomyRead complete →

Edelweiss Mutual Fund Launches India's First REIT-Oriented Index Fund

In July 2026, Edelweiss Mutual Fund launched the Edelweiss Nifty REITs & Realty Index Fund, described as India's first REIT-oriented open-ended passive index fund. It tracks the Nifty REITs & Realty Total Return Index (TRI), which currently allocates about 60% to listed REITs and 40% to listed real estate companies. Under SEBI regulations, Real Estate Investment Trusts (REITs) were reclassified as equity instruments from 1 January 2026 and became eligible for equity indices from 1 July 2026. InvITs (Infrastructure Investment Trusts) remain hybrid instruments and cannot be combined with REITs in a single passive index fund.

GK ByteA REIT pools investor money to own/operate income-generating real estate | Regulated by SEBI | India's first listed REIT was Embassy Office Parks REIT (2019) | SEBI was established in 1988 and given statutory powers in 1992

📅 30 Jul 2026EconomyRead complete →

Government Approves RBI Field Trials of Rs 10 and Rs 20 Polymer Currency Notes

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, a significant step towards evaluating more durable currency notes. Minister of State for Finance Pankaj Chaudhary informed Parliament that the proposal was approved under Section 25 of the RBI Act, 1934, following the recommendation of the RBI's Central Board, and that the trial notes are worth about Rs 3,000 crore. The RBI will conduct the trials under different climatic and usage conditions to evaluate durability, security features and public acceptance; regular issuance will begin only after successful evaluation. Polymer notes are printed on a non-fibrous, non-porous polymer substrate instead of conventional banknote paper. The government clarified that paper currency is not being phased out - polymer notes are being tested as an additional option and would circulate alongside existing paper notes.

GK ByteRBI established: 1 April 1935 under the RBI Act, 1934 | Nationalised in 1949 | Headquarters: Mumbai | RBI is India's sole currency-issuing authority except the Re 1 note & coins (issued by the Ministry of Finance) | Currency notes are printed at presses in Nashik, Dewas, Mysuru and Salboni

📅 30 Jul 2026EconomyRead complete →

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.

GK ByteRBI established: 1 April 1935 (under RBI Act, 1934) | RBI HQ: Mumbai | RBI Governor: Sanjay Malhotra | RBI nationalised: 1949 | First country to issue polymer notes: Australia (1988)

📅 29 Jul 2026EconomyRead complete →

See all Banking & Economy →All Current Affairs