2 weeks ago
Government approves polymer ₹10, ₹20 banknotes, says FM Sitharaman
The government of India wants to try making money out of plastic.
Normal money is made from special cotton paper.
Plastic money, called polymer notes, is made from a stronger material.
The Reserve Bank of India wants to test these notes in Indian weather and conditions.
The Finance Minister told lawmakers that the government approved the test plan.
During the test, they will make one billion ten-rupee notes and one billion twenty-rupee notes.
Plastic notes stay clean and last much longer than paper money.
They are also harder for dishonest people to copy.
Many countries, like Australia, Canada and the UK, already use plastic money.
If the test goes well, plastic notes could be introduced at the start of the next financial year.
RBI Governor Sanjay Malhotra announced a pilot to test polymer banknotes under Indian climate, conditions and infrastructure.
Finance Minister Nirmala Sitharaman told the Rajya Sabha that the government approved RBI's proposal for one billion pieces each of ₹10 and ₹20 polymer notes for field trials.
The rollout is expected at the beginning of the next fiscal year if trials go as planned, but no exact launch date was given as procurement is at an initial stage.
Polymer notes are made from a plastic substrate instead of cotton-based paper, resist moisture, dirt and wear, and include security features like see-through windows and micro-optic holograms.
Around 60 countries, including Australia, Canada, the UK, New Zealand and Singapore, already use polymer banknotes.
- Who
- RBI Governor Sanjay Malhotra, Finance Minister Nirmala Sitharaman and MP Neeraj Shekhar
- What
- Pilot field trials and planned introduction of ₹10 and ₹20 polymer (plastic) banknotes in India
- Where
- India, with the proposal discussed in the Rajya Sabha and trials to test Indian conditions
- When
- Pilot announced last week; discussed in the Rajya Sabha on Tuesday, 11 August; rollout expected at the beginning of the next fiscal year
- Why
- To address the rising cost of printing paper currency and the need to replace soiled notes, since polymer notes are more durable and harder to counterfeit
Key facts
- Denominations
- ₹10 and ₹20
- Trial quantity
- One billion pieces of each denomination
- Status
- Government approved RBI proposal; procurement process at initial stage
- Expected rollout
- Beginning of next financial year, pending successful trials
- Material
- Plastic (polymer) substrate instead of cotton-based paper
- Countries using polymer notes
- About 60, including Australia, Canada, UK, New Zealand and Singapore
- Motivation
- Rising printing costs and high volume of soiled notes to replace
Quotes
Nirmala Sitharaman, Union Minister of Finance
Finance Minister of India
“RBI has informed that the procurement process is presently at an initial stage. Therefore, at this point of time, it would not be possible to practicably determine the exact timeframe for introduction of polymer banknotes or the expenditure likely to be incurred thereon.”
livemint.com
“The proposal has been approved by the Government. As per RBI, these polymer banknotes are proposed to be issued along with paper substrate-based banknotes.”
livemint.com
Sources
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