When Will India Launch Rs 10 And 20 Plastic Notes? Central Government Gives Green Signal

New Delhi: Plastic or polymer currency notes may soon be introduced in India. The central government has approved the proposal of the Reserve Bank of India (RBI), under which field trials of polymer notes of Rs 10 and Rs 20 will be conducted. In the initial phase, 100 crore notes of each of the denominations will be issued so that their strength, durability and security features can be tested in different climates and usage conditions. However, the government has clarified that at present there is no plan to completely ban paper notes.

What will be the biggest benefits of plastic notes?

Polymer notes are considered to be much more durable than normal paper notes. They do not burst easily, they are less affected by water and moisture and their lifespan is also longer. Apart from this, modern security features can be added to them, which makes it very difficult to create fake notes. Low value notes change hands the most, so the cost of printing and exchanging them is also high. Polymer notes can help reduce this cost.

Will the old Rs 10 and Rs 20 notes be demonetised?

The government has clarified that this is just a test project. This does not mean that the existing paper notes will go out of circulation immediately. During the field trial, both polymer and paper notes will be in circulation simultaneously. Only after reviewing the test results will the RBI decide whether these notes should be produced regularly in future or not.

Which country in the world first adopted polymer notes?

Polymer banknotes were first adopted by Australia. In 1988, Australia issued the world's first fully polymer banknote. After this, Canada, United Kingdom, New Zealand, Singapore, Malaysia and many other countries also adopted this technology. Today, plastic notes are in circulation in dozens of countries across the world and are considered a better option in terms of security and durability.

Had such an attempt been made in India before?

The idea of polymer notes is not new in India. About a decade ago, polymer notes of Rs 10 were tested on a limited scale, but they could not be implemented on a large scale. Now RBI has once again decided to take this scheme forward and start testing on the basis of new technology and global experiences. For this, the process of purchasing special polymer substrate has also been started.

Will there be any impact on digital payments?

Experts believe that the introduction of polymer notes will not have any direct impact on the digital payment system. Its aim is to make cash more secure, sustainable and low-cost. If the field trial is successful, this technology can be used in other low value notes in future. At present, the entire focus of the government and RBI is on assessing the results of the test, after which the further strategy will be decided.