The government has approved a Reserve Bank of India (RBI) proposal to introduce one billion each of Rs 10 and Rs 20 polymer notes for field trials and for regular issuance of polymer notes in these two denominations after successful completion of field trials, the Finance Ministry confirmed on Monday.
In a written reply to Parliament on Monday, Pankaj Chaudhary, Minister of State for Finance, said, “The proposal has been approved by the government. The RBI had informed that according to international studies, the life expectancy of polymer notes is significantly higher than that of paper notes. The introduction of polymer notes is currently at a preliminary stage, as it can only be a preliminary stage, if only a digital stage can be affected, if there is any effect on the payment. of these notes.”
The central bank intends to parallel both paper and polymer notes and has no plans to withdraw the notes from the market.
A few weeks ago, a tender was floated by a subsidiary of the Reserve Bank of India (RBI) that revealed the intention to start a trial of plastics
notes. This is not the first time that the central bank aims to have polymer banknotes. In 2012, a similar field trial was announced, however, the plan was never implemented. Bharatiya Reserve Bank Note Mudran Pvt Ltd (BRBNMPL) tender invited bids for Rs 3.4 crore polymer sheets to be used for printing currency notes. The polymer sheets to be used for the banknotes are not just plastic sheets, but rather would have some special security features, media reports suggest. However, the tender mentioned that 3.4 crore sheets were an “immediate demand”.
The RBI issued a global expression of interest (EOI) a few weeks ago calling for global players to manufacture and supply polymer substrate sheets, the specialized material used for printing polymer currency notes. The deadline for submitting offers is August 18.
Polymer banknotes are considered significantly more durable than conventional paper coins, and are therefore expected to last longer in circulation. The polymer makes them more resistant to moisture, dirt and wear. Some countries, including Australia, Canada, the United Kingdom and New Zealand, have polymer currency.
