India set to roll out ₹10, ₹20 plastic notes soon:200 crore notes to be printed for trial run, paper currency to remain in circulation alongside

Plastic ₹10 and ₹20 notes will soon be available in the market. The Reserve Bank will print 100 crore notes each, totaling 200 crore made of polymer, or plastic. This will be a trial of plastic currency. If successful, more notes will be printed in the future. The central government has granted its approval for the initiative. The information was shared by Minister of State for Finance Pankaj Chaudhary in the Lok Sabha on Monday. Following a successful trial of polymer banknotes, the RBI will begin issuing ₹10 and ₹20 denomination notes on a regular basis. However, existing paper currency will continue to remain in circulation and will not be discontinued. Ten days ago, media reports had suggested that the RBI was preparing to launch the country’s first pilot project involving polymer-made notes. This marks the next step in the RBI’s plan to introduce next-generation currency in the country. Know the key facts: Questions and answers 1. What are polymer notes, and why is govt introducing them? Polymer banknotes are printed on a specially designed polymer (plastic) substrate instead of traditional cotton-based paper. Although they feel similar to conventional banknotes, they are more durable, water-resistant, and less prone to wear and tear. The main reasons for bringing them are- Longevity: These notes do not get damaged by water, dust, and dirt and also do not tear easily. Curbing counterfeit notes: Advanced security features can be easily added to polymer sheets, making counterfeit notes virtually impossible. Savings on printing costs: Paper notes deteriorate quickly, increasing printing costs. In FY25, the RBI spent ₹6,372.8 crore on printing paper notes. Polymer notes will have a longer life, reducing the cost of reprinting. 2. When will these polymer notes come into the market? This is currently a trial or pilot project. The RBI’s note-printing unit has issued a global tender for the supply of polymer substrate sheets, with August 18th set as the deadline for submitting bids. These notes will be released into the market in phases only after the tender process is completed, the raw materials are procured, and printing is complete. If this trial is successful, more notes will be printed in polymer in the future. 3. Will the old ₹10 and ₹20 paper notes be discontinued? Absolutely not. The government and the RBI have made it absolutely clear that the introduction of polymer notes will not make old paper notes obsolete. Co-existence: Both polymer and paper notes will continue to circulate in the market simultaneously. Change in Phase: This change will be done gradually and in a phased manner, i.e., in different stages. Circulation will continue: Paper notes will remain in circulation until the new notes are fully established. 4. When was the proposal for polymer notes made? 2012: India first attempted to introduce polymer notes to increase the shelf life of notes, but the project was stalled due to technical reasons. May-June: Media reports and RBI reports suggest polymer notes are being considered to increase shelf life. In June, RBI Governor Sanjay Malhotra confirmed that the proposal for polymer notes is under consideration and the pros and cons are being evaluated. Recent decision: Minister of State for Finance Pankaj Chaudhary confirmed in Parliament that the central government has approved the trial of 200 crore polymer notes. 5. In which countries of the world are plastic notes used? Polymer banknotes have been introduced into circulation in more than 60 countries worldwide, including Australia, Canada, the United Kingdom (UK), and New Zealand. 6. What is the current currency in circulation in India? There are mainly 6 types of notes issued by the Reserve Bank of India and in circulation in the market… ₹10 Note: (Mahatma Gandhi Series/New Chocolate Brown Note) ₹20 Note: (Old Red-Bronze Note and New Green-Yellow Note) ₹50 Note: (Old and New Fluorescent Blue Notes) ₹100 Note: (Old Blue Note and New Lavender/Purple Note) ₹200 Note: (Bright Yellow Note) ₹500 Note: (New Stone Grey Note) Note: ₹1, ₹2 and ₹5 paper notes have now been discontinued (as coins are issued in their place), but if you have old ones lying around, they are still valid. 7. When were the notes changed in India? Since independence, India has witnessed three large-scale demonetisations or the decision to ban high-value currency notes. 1. First time – January 1946 (British period/just before independence): What happened: The then British government demonetized the ₹500, ₹1,000, and ₹10,000 denomination notes. The purpose: To flush out black money and illegal war proceeds. Later: In 1954, the government reintroduced ₹1,000, ₹5,000, and ₹10,000 notes. 2. Second time – January 1978 (Morarji Desai Government): What happened: The Janata Party government demonetized the ₹1,000, ₹5,000, and ₹10,000 denomination notes. The goal was to prevent the use of black money and corruption in elections. 3. Third time – 8 November 2016 (Narendra Modi government): What happened: At 8 p.m., Prime Minister Modi declared the ₹500 and ₹1,000 notes in circulation overnight invalid. Changes: These were replaced by a new ₹500 note and, for the first time, a new ₹2,000 note. Withdrawal of ₹2,000 notes (May 2023): On May 19, 2023, the RBI announced the withdrawal of ₹2,000 notes from circulation under its “Clean Note Policy.” However, this was not called demonetization because time was given to deposit or exchange them at banks. RBI issued global tender The RBI’s note-printing unit recently issued a global “Expression of Interest” (EOI). This tender is for the manufacture and supply of a special type of polymer substrate sheet used to print these notes. According to the documents, manufacturers worldwide have been invited to supply polymer substrates equipped with advanced safety features. The deadline for submitting bids for this tender is August 18th. What is Expression of Interest? This is a kind of global tender document, through which the Reserve Bank invites experienced and qualified companies from all over the world to send proposals for the project along with their capabilities, technology, and prices. The new notes will not tear and will be protected from water and dust Polymer banknotes are much more durable than traditional paper notes. They are resistant to water, dirt, and dust. Furthermore, they are also less prone to tearing, allowing them to remain undamaged and clean for longer periods of time. Another major advantage of polymer sheets is that they can easily incorporate advanced security features. This makes them virtually impossible for counterfeiters to copy, further strengthening the country’s security system.