Government Approves RBI Proposal for Polymer ₹10 and ₹20 Banknotes

¨     The Government of India approved the Reserve Bank of India (RBI) proposal to introduce one billion polymer banknotes each in the ₹10 and ₹20 denominations.

¨     The approval is limited to field trials, and regular circulation will begin only after the successful completion of these trials.

¨     The proposal was approved under Section 25 of the Reserve Bank of India Act, 1934, following a recommendation from the RBI Central Board.

¨     Polymer banknotes are printed on a plastic-based substrate instead of conventional paper pulp.

¨     Countries such as Australia, Canada, New Zealand, and the United Kingdom have already introduced polymer currency notes.

¨     Polymer notes are more resistant to moisture, dirt, and tearing than paper notes.

¨     They generally have a longer circulation life, reducing replacement costs.

¨     In India, banknotes are issued by the Reserve Bank of India, while coins are issued by the Government of India.

¨     The Mahatma Gandhi Series is the current series of banknotes in circulation in India

¨ The ₹10 and ₹20 notes are among the most widely used denominations for retail transactions and public transport payments.