Plastic Note: Big update is here regarding plastic note. Have you ever come across banknotes that resist water and won’t tear in your pocket? You might soon find yourself holding plastic or polymer ₹10 and ₹20 notes. The central government has announced to Parliament that it has approved a plan to introduce 1 billion polymer banknotes of ₹10 and ₹20 for field trials.

This approval was granted under Section 25 of the RBI Act, 1934, following the recommendation from the Central Board of the Reserve Bank of India (RBI), as stated by Finance Minister Nirmala Sitharaman in a written response in the Rajya Sabha.

Polymer notes will be accepted alongside paper notes

The government has clarified that these new polymer notes will not replace existing notes. Instead, these polymer banknotes will circulate together with the current paper notes. Regular issuance of polymer notes in both denominations will only take place after the successful completion of the field trials.

The RBI has mentioned that the printing process for these notes is still in its initial phases. Consequently, the exact release date or potential costs cannot be determined at this moment.

 

What makes plastic notes unique?

 

Lower denomination notes (like ₹10 and ₹20) change hands frequently, making them susceptible to dirt, tears, or water damage. Polymer notes have a lifespan that is three to four times longer than regular paper notes. They are resistant to damage from water or sweat. Additionally, these notes can incorporate security features that make counterfeiting extremely challenging.

People in these countries are already using plastic currency

The idea of ​​plastic notes isn’t entirely new; many major countries around the world have successfully adopted it for years. Plastic currency is widely in circulation in countries like Australia, the UK, and Singapore. India also experimented with it on a small scale in select cities a few years ago, but this time, with 1 billion notes, it’s going to be the largest and most decisive trial yet.

When will it reach your pocket?

Approval has been granted, but the exact date when these notes will be in your hands is still unclear. According to the government, the RBI’s work on sourcing raw materials and arranging for printing is still in its early stages. Therefore, a firm launch date and final cost estimate have not yet been revealed.