Centre approves RBI’s trial of ₹10 and ₹20 polymer based banknotes

(We said this on June 3)

Will RBI switch to polymer-plastic Notes?

The Reserve Bank of India is revisiting the possibility of introducing polymer banknotes, reviving a proposal first considered over a decade ago, amid rising costs of printing paper currency and the persistent challenge of managing soiled notes.

Sources indicate that the central bank is likely to roll out a pilot project soon, with the issue having figured prominently in discussions at the RBI’s last two board meetings held in Patna and Mumbai. The move comes as billions of worn-out notes are withdrawn from circulation each year, adding to operational and replacement costs.