Government approves field trials of Rs 10, Rs 20 polymer notes

New Delhi: The Centre has approved the Reserve Bank of India’s proposal to introduce polymer banknotes in the Rs 10 and Rs 20 denominations on a trial basis, Parliament was informed on Tuesday.

Finance Minister Nirmala Sitharaman said the RBI’s central board had recommended the introduction of one billion polymer notes each in the Rs 10 and Rs 20 denominations. The proposal was submitted to the government under Section 25 of the Reserve Bank of India Act, 1934.

The polymer notes will initially be tested in the field. Subject to the outcome of the trials, the RBI plans to move towards their regular issuance in these denominations.

The new polymer currency will be circulated alongside existing paper-based banknotes, Sitharaman said in a written reply to the Rajya Sabha.

The RBI has initiated the procurement process, but it is currently at an early stage. As a result, the government is not yet in a position to specify when the polymer notes will enter circulation or estimate the overall cost of the exercise, the Finance Minister said.