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

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

• Approved by: Government of India approved RBI proposal to conduct field trials of 1 Bn polymer banknotes each in Rs 10 and Rs 20 denominations - worth Rs 3000 Cr for trials.
• Legal Provision: RBI with recommendation of Central Board sent proposal under Section 25 of RBI Act 1934 for introduction.
• Field Trials: Authorised to conduct trials under different climatic and usage conditions to evaluate durability, security features, public acceptance. Regular issuance only after successful evaluation.
• Polymer Notes: Printed on non-fibrous and non-porous polymer substrate rather than conventional banknote paper.
• Clarification: Tested as additional option, no proposal to replace existing paper substrate-based banknotes.
• UPSC Relevance: GS3 - Economy, Currency management, Polymer notes used in Australia, Canada etc.
• Prelims Point: Section 25 RBI Act - design, form, material of banknotes.