July 28, New Delhi:
The Government has approved the Reserve Bank of India’s proposal to introduce polymer banknotes in the denominations of ₹10 and ₹20.
In a written reply in the Lower House, Minister of State for Finance Pankaj Chaudhary informed that the RBI had sent a proposal to the Government for the introduction of one billion pieces each of ₹10 and ₹20 polymer banknotes for field trials.
He said regular issuance of polymer banknotes in the two denominations will be done after the successful completion of field trials. The Minister said the RBI had informed that, as per international studies, the life span of polymer banknotes is significantly higher than that of paper banknotes.
He added that the introduction of polymer banknotes is currently in a preliminary phase and the impact on digital payments could be ascertained only after regular issuance of these notes.