India Clears Field Trial Proposal for Polymer Currency Notes

The Reserve Bank of India (RBI) has been exploring the use of polymer banknotes for several years to improve their lifespan and security. The government has now cleared a proposal from the RBI to conduct field trials of ₹10 and ₹20 polymer notes.

According to Minister of State for Finance Pankaj Chaudhary, the government has approved the issuance of one billion polymer ₹10 notes and one billion polymer ₹20 notes for field trials. However, he clarified that this approval is limited to a pilot exercise and no decision has been taken to replace existing paper currency notes with polymer ones.

The field trial aims to evaluate the performance of polymer notes under Indian conditions before deciding on their wider circulation. The assessment will examine factors such as durability, performance in different climatic conditions, public handling, machine compatibility, and other operational aspects.

Polymer banknotes are made from a plastic substrate instead of cotton-based paper used for conventional currency. They offer improved resistance to moisture, dirt, folding, and tearing, allowing them to remain in circulation longer than paper notes.