Overview
- The central government approved the RBI plan for field trials of one billion polymer notes each of Rs 10 and Rs 20, the finance minister told Parliament on Tuesday.
- The RBI submitted the proposal under Section 25 of the Reserve Bank of India Act after its central board recommended trials to assess operational performance and security.
- The printing arm BRBNMPL has begun procurement steps and invited bids for opacified polymer substrate sheets, but officials say the exercise is at an early stage so timing and costs remain undetermined.
- RBI governor Sanjay Malhotra has said the bank is targeting circulation at the start of the next financial year only if tests prove successful and operational issues are resolved.
- Polymer notes tend to last two to four times longer, resist moisture and resist counterfeiting more than paper notes, but questions remain about lifecycle costs, environmental impact and how the notes will fare in India’s cash network.