Okayed trials for polymer notes for ₹10, 20; no plan to replace paper yet: Govt

The Indian government has given the green light for field trials of polymer banknotes in the ₹10 and ₹20 denominations, following a proposal from the Reserve Bank of India (RBI). While this marks a step towards exploring alternative currency materials, the government clarified that there are no current plans to phase out the existing paper currency.

The RBI's currency-printing subsidiary, Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL), is set to print one billion pieces of each denomination for the trials. This initiative aims to assess the durability and practicality of polymer notes in India's diverse climatic conditions.

Preparations for the trials have involved a global expression of interest for opacified polymer substrate sheets embedded with security features. The tender included strict national security conditions, requiring bidders to firewall operations in China or Pakistan and to avoid sourcing raw materials from these countries. Entities from nations sharing a land border with India must also register with the government.

If the field trials prove successful, the RBI may consider a larger procurement of polymer banknotes across multiple denominations. This move reflects a cautious approach to currency innovation, prioritizing thorough testing before any widespread adoption.