India Gives Nod to RBI's Polymer Currency Note Trial

The Indian government has given its nod to the Reserve Bank of India (RBI) for conducting field trials of polymer currency notes in the Rs 10 and Rs 20 denominations. According to Minister of State for Finance Pankaj Chaudhary, the approval was confirmed in a written reply to a question in the Lok Sabha.

The RBI has proposed introducing polymer notes on a trial basis to evaluate their performance under Indian conditions. The central bank plans to issue one billion pieces each of Rs 10 and Rs 20 polymer currency notes as part of the field trials.

Chaudhary clarified that the move does not signal the end of paper currency, with polymer notes proposed to circulate alongside existing paper notes. He also stated that there is no proposal to phase out paper-based banknotes in favor of polymer currency.