Plastic notes to be introduced soon in the country:Trial to begin with ₹10 and ₹20 notes; full-scale launch expected in 2027

The Reserve Bank of India is soon going to launch the first pilot project of plastic or polymer notes in the country. According to media reports, this is the next step in RBI’s plan to bring a new generation of currency to the country. Trial to begin with ₹10 and ₹20 notes In the initial phase, the Reserve Bank will first test it on small value notes. According to information received from official sources, the first pilot project is expected to start with small notes of ₹10 and ₹20 value. RBI will make further decisions based on the results and experiences of this trial. If this testing is completely successful, RBI may start a full-scale launch of these polymer notes in the country from the year 2027. Old paper notes will also continue along with new notes The arrival of polymer notes in the Indian market does not mean at all that existing paper notes will immediately go out of circulation. RBI has clarified that the new currency will not replace old paper notes. RBI Issues Global Tender The preparations for this entire project gained momentum when the RBI’s note-printing unit issued a global ‘Expression of Interest’ (EOI). This tender has been invited for the manufacturing and supply of a special type of ‘polymer substrate sheet’, which is used for printing these notes. According to the documents, manufacturers from around the world have been invited to supply polymer substrates equipped with advanced safety features. Under this tender, the last date for submitting bids has been set as August 18. New notes will not tear, will also be protected from water and dust Banknotes made from polymer are much more durable compared to traditional paper notes. These notes remain safe even in water, dirt and dust. Besides this, these notes do not tear easily either. Due to this reason, they remain in the market for a long time without tearing and stay clean. The biggest advantage of polymer sheets is also that advanced safety features can be easily added to them. This makes it almost impossible for counterfeiters who make fake notes to copy them, which will make the country’s safety system even stronger. Polymer notes already in use in many major countries of the world Polymer banknotes have been in use for a long time in many developed countries of the world. These include countries like Australia, Canada, United Kingdom (UK) and New Zealand. RBI has previously expressed its desire to introduce polymer notes to increase the lifespan of currency notes circulating in the country and improve their quality. Now this pilot project, which is about to start soon, will be the first real test. However, no official statement has been issued by the RBI on this so far. What are polymer banknotes? These notes are printed on a special type of plastic material, i.e., polymer substrate, instead of paper. They feel as light as regular notes to touch, but they don’t deteriorate even when soaked in water and last for a long time. What is Expression of Interest? This is a type of global tender document, through which the Reserve Bank invites experienced and qualified companies from around the world to send proposals with their capabilities, technology, and prices for the project.