Centre clears RBI field trial of 2 billion polymer Rs 10, Rs 20 currency notes
The Centre has cleared the RBI's proposal to test 2 billion polymer Rs 10 and Rs 20 notes in field trials. The move keeps paper notes in circulation while assessing durability, costs and any impact on payments.
The centre has approved the Reserve Bank of India’s proposal under the RBI Act 1934, to introduce 2 billion polymer currency notes in Rs 10 and Rs 20 denominations for field trials.
A successful completion of the initial phase of field trials will be followed by consideration of regular issuance of the polymer currency notes.
With no definite launch date in sight, the centre has stated that the proposal does not seek to replace the presently existing paper-based notes.
WILL CURRENT NOTES BE REPLACED?
Minister of State for Finance Pankaj Chaudhary on Monday, replying to a question in the monsoon session of the Lok Sabha, said that these two billion plastic-substrate notes will exist alongside the already circulated currency.
"RBI has informed that as per international studies, the life span of polymer currency notes is significantly higher than that of paper banknotes. The introduction of polymer banknotes is currently in a preliminary phase," Chaudhary said.
In addition, Chaudhary dismissed any concerns of hampering the robust digital transaction system of India.
“The impact on digital payments, if any, could be ascertained only after the regular issuance of these notes. Moreover, currency notes and digital payment systems are complementary payment tools available to the public,” Chaudhary told Parliament.
During the authorised trial, the non-porous polymer notes will be tested under varying climatic conditions for parameters such as durability, crease and condition resistance, handling, public feedback, etc.
This environmental stress-testing ensures the currency notes can survive intense heat, humidity, dust, and heavy wear before a nationwide rollout.
ADVANCE PREPARARTION FOR THE TRIAL
On July 17, weeks before Centre’s decision, the Bharatiya Reserve Bank Note Mudran Pvt Ltd (BRBNMPL), the RBI’s currency printing arm floated a global Expression of Interest for procurement of 68000 reams of opacified polymer substrate sheets.
It invited the manufacturers to supply these sheets with embedded security features to evaluate components such as texture variation and substrate integration.
Officials note that the initiative could take several months to come to fruition, given the government’s focus on secure and uncompromised transactions.
While polymer notes cost roughly 20% to 24% more to manufacture initially, they last 2.5 to 4 times longer than cotton-rag paper notes. This is important in reducing the annual printing expenses, which climbed to 6,372.8 crore.
Over a standard lifecycle, extending the durability of 10 and 20 bills with trial polymer currency notes will save the central bank thousands of crores in print, transport, and other disposal costs.
The centre has approved the Reserve Bank of India’s proposal under the RBI Act 1934, to introduce 2 billion polymer currency notes in Rs 10 and Rs 20 denominations for field trials.
A successful completion of the initial phase of field trials will be followed by consideration of regular issuance of the polymer currency notes.
With no definite launch date in sight, the centre has stated that the proposal does not seek to replace the presently existing paper-based notes.
WILL CURRENT NOTES BE REPLACED?
Minister of State for Finance Pankaj Chaudhary on Monday, replying to a question in the monsoon session of the Lok Sabha, said that these two billion plastic-substrate notes will exist alongside the already circulated currency.
"RBI has informed that as per international studies, the life span of polymer currency notes is significantly higher than that of paper banknotes. The introduction of polymer banknotes is currently in a preliminary phase," Chaudhary said.
In addition, Chaudhary dismissed any concerns of hampering the robust digital transaction system of India.
“The impact on digital payments, if any, could be ascertained only after the regular issuance of these notes. Moreover, currency notes and digital payment systems are complementary payment tools available to the public,” Chaudhary told Parliament.
During the authorised trial, the non-porous polymer notes will be tested under varying climatic conditions for parameters such as durability, crease and condition resistance, handling, public feedback, etc.
This environmental stress-testing ensures the currency notes can survive intense heat, humidity, dust, and heavy wear before a nationwide rollout.
ADVANCE PREPARARTION FOR THE TRIAL
On July 17, weeks before Centre’s decision, the Bharatiya Reserve Bank Note Mudran Pvt Ltd (BRBNMPL), the RBI’s currency printing arm floated a global Expression of Interest for procurement of 68000 reams of opacified polymer substrate sheets.
It invited the manufacturers to supply these sheets with embedded security features to evaluate components such as texture variation and substrate integration.
Officials note that the initiative could take several months to come to fruition, given the government’s focus on secure and uncompromised transactions.
While polymer notes cost roughly 20% to 24% more to manufacture initially, they last 2.5 to 4 times longer than cotton-rag paper notes. This is important in reducing the annual printing expenses, which climbed to 6,372.8 crore.
Over a standard lifecycle, extending the durability of 10 and 20 bills with trial polymer currency notes will save the central bank thousands of crores in print, transport, and other disposal costs.
The centre has approved the Reserve Bank of India’s proposal under the RBI Act 1934, to introduce 2 billion polymer currency notes in Rs 10 and Rs 20 denominations for field trials.
A successful completion of the initial phase of field trials will be followed by consideration of regular issuance of the polymer currency notes.
With no definite launch date in sight, the centre has stated that the proposal does not seek to replace the presently existing paper-based notes.
WILL CURRENT NOTES BE REPLACED?
Minister of State for Finance Pankaj Chaudhary on Monday, replying to a question in the monsoon session of the Lok Sabha, said that these two billion plastic-substrate notes will exist alongside the already circulated currency.
"RBI has informed that as per international studies, the life span of polymer currency notes is significantly higher than that of paper banknotes. The introduction of polymer banknotes is currently in a preliminary phase," Chaudhary said.
In addition, Chaudhary dismissed any concerns of hampering the robust digital transaction system of India.
“The impact on digital payments, if any, could be ascertained only after the regular issuance of these notes. Moreover, currency notes and digital payment systems are complementary payment tools available to the public,” Chaudhary told Parliament.
During the authorised trial, the non-porous polymer notes will be tested under varying climatic conditions for parameters such as durability, crease and condition resistance, handling, public feedback, etc.
This environmental stress-testing ensures the currency notes can survive intense heat, humidity, dust, and heavy wear before a nationwide rollout.
ADVANCE PREPARARTION FOR THE TRIAL
On July 17, weeks before Centre’s decision, the Bharatiya Reserve Bank Note Mudran Pvt Ltd (BRBNMPL), the RBI’s currency printing arm floated a global Expression of Interest for procurement of 68000 reams of opacified polymer substrate sheets.
It invited the manufacturers to supply these sheets with embedded security features to evaluate components such as texture variation and substrate integration.
Officials note that the initiative could take several months to come to fruition, given the government’s focus on secure and uncompromised transactions.
While polymer notes cost roughly 20% to 24% more to manufacture initially, they last 2.5 to 4 times longer than cotton-rag paper notes. This is important in reducing the annual printing expenses, which climbed to 6,372.8 crore.
Over a standard lifecycle, extending the durability of 10 and 20 bills with trial polymer currency notes will save the central bank thousands of crores in print, transport, and other disposal costs.
