Govt Approves Trial of Rs 10, Rs 20 Polymer Notes
UPSC / SSC current affairs note · Economy
Why in news
The Indian government has approved a trial of polymer banknotes in denominations of Rs 10 and Rs 20. This move is significant as it explores a more durable alternative to paper currency, though there is no plan to replace paper notes entirely.
Background
Polymer banknotes are made from a thin, flexible plastic material and are used in several countries like Australia, Canada, and the UK. They are known for being more durable, secure, and resistant to moisture and dirt compared to paper notes.
Key facts
Government has approved trial of Rs 10 and Rs 20 polymer notes.
RBI informed the government that international studies show polymer notes have longer lifespan than paper notes.
No plan to replace paper currency entirely.
Polymer notes are more durable and secure.
Trial will help assess feasibility and public acceptance.
Prelims pointers
- Polymer banknotes: made from plastic polymer (Biaxially Oriented Polypropylene).
- Denominations for trial: Rs 10 and Rs 20.
- Countries using polymer notes: Australia, Canada, UK, New Zealand, etc.
- RBI: Reserve Bank of India, currency issuer.
- Paper currency vs polymer: durability, cost, environmental impact.
Mains angles
- GS3 Economy: Currency management, cost-benefit analysis of polymer vs paper notes.
- GS3 Science & Tech: Polymer technology in currency production.
- GS3 Environment: Environmental impact of polymer notes (non-biodegradable vs paper).