Government Nod for 2 Billion Polymer Banknotes of Rs 10 & Rs 20
UPSC / SSC current affairs note · Economy
Why in news
The Indian government has permitted the RBI to print 2 billion polymer banknotes in Rs 10 and Rs 20 denominations for field trials. This move aims to enhance the lifespan of currency and address the shortage of these denominations. The announcement was made in Parliament on July 28, 2026.
Background
Polymer banknotes have been under discussion for nearly two decades. They are known to have a significantly higher lifespan than paper notes. RBI has been pushing coins for Rs 10 and Rs 20 denominations, which together account for nearly a quarter of banknotes in circulation by volume but only 1.4% by value.
Key facts
Government approved printing of 2 billion polymer notes: 1 billion each of Rs 10 and Rs 20.
Notes will be used for field trials initially, followed by regular issuance.
Paper and polymer currency will coexist; no replacement of paper notes.
RBI has floated a tender to source material for polymer notes.
Polymer notes have significantly higher lifespan than paper notes as per international studies.
Rs 10 and Rs 20 notes are hard to find in circulation.
Launch may take a few months due to safety and sourcing concerns.
RBI has been promoting coins for these denominations.
Prelims pointers
- Polymer banknotes: Rs 10 and Rs 20 denominations
- 2 billion pieces approved for field trials
- RBI to print and issue
- Paper and polymer currency coexistence
- Higher lifespan of polymer notes
- Tender floated by RBI for material sourcing
- Rs 10 and Rs 20 coins also in circulation
Mains angles
- Discuss the advantages and challenges of introducing polymer banknotes in India.
- Analyze the impact of polymer notes on currency management and counterfeit prevention.
- Evaluate the role of RBI in modernizing currency and addressing denomination shortages.