New Delhi, July 28:
The Centre has approved the Reserve Bank of India’s proposal to conduct field trials of one billion polymer banknotes each in ₹10 and ₹20 denominations, marking a significant step towards introducing longer-lasting currency in India.
According to the Ministry of Finance, the polymer notes will initially undergo field testing before any decision is taken on their regular circulation. International studies indicate that polymer banknotes have a significantly longer lifespan than conventional paper notes.
The government clarified that there is no proposal to replace paper currency entirely. Polymer and paper banknotes will circulate together if the trials prove successful.
The Ministry also said the initiative is still in a preliminary stage, and its impact on digital payments can be assessed only after regular issuance. It added that cash and digital payment systems are complementary modes of payment available to the public.
