RBI to Trial ₹10 and ₹20 Polymer Notes | Plastic Notes | Latest Update | Drishti IAS English

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The Government has approved the Reserve Bank of India’s proposal to conduct field trials of ₹10 and ₹20 polymer banknotes. Under the pilot project, the RBI will issue 100 crore pieces each of ₹10 and ₹20 polymer notes, with a combined face value of ₹3,000 crore.
However, the Government has clarified that polymer notes will not replace existing paper currency. Both polymer and paper banknotes will circulate together during the trial. Regular issuance of polymer notes in these denominations will be considered only after the successful completion of the field trials.
The ₹10 and ₹20 denominations have been selected because they are frequently used in everyday transactions and experience considerable wear and tear. Together, these denominations account for nearly one-fourth of all currency notes in circulation by volume, but represent only around 1.3% of their total value.
In this video, we explain why the RBI is testing polymer banknotes, how plastic notes differ from traditional paper currency, why the ₹10 and ₹20 denominations were selected, whether existing paper notes will be discontinued, and how polymer currency could affect printing costs and cash management in India.
For UPSC aspirants, this topic is important from the perspective of Indian Economy, Banking, Currency Management, Reserve Bank of India, Monetary System, Digital Payments, Public Finance and Current Affairs.


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