The Union Finance Ministry has approved the Reserve Bank of India (RBI) proposal to conduct field trials of Rs 10 and Rs 20 polymer banknotes, MoS Finance, Pankaj Chaudhary told the Lok Sabha.
One billion Rs 10 notes and one billion Rs 20 notes will be issued for field trials, the minister said.
The government further clarified that the polymer notes will circulate alongside paper currency, not replace existing banknotes.
Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL) has floated a global tender for 68,000 reams of polymer substrate, with bids due by August 18.
MoS Finance further told that the RBI had informed that as per international studies, the life span of polymer banknotes is significantly higher than that of paper banknotes. The introduction of polymer banknotes is currently in a preliminary phase and the impact on digital payments, if any, could be ascertained only after regular issuance of these notes. Moreover, banknotes and digital payment systems are complementary payment tools available to public.
As per RBI, Polymer banknotes are proposed to be issued along with paper substrate based banknotes and that there is no proposal to replace paper currency with polymer substrate based banknotes.
Govt Approves RBI Trial of Rs 10 And Rs 20 Polymer Notes
