Field trials for polymer banknotes in ₹10 and ₹20 denominations have been sanctioned by the government, according to information given to Parliament on Tuesday. These trials will involve issuance of 1 billion notes each of the two denominations, thereby increasing the total number of trials to 2 billion. RBI had forwarded the proposal to the government under Section 25 of the RBI Act, 1934, after it was recommended by the central board of the bank.
The polymer banknotes trials will mark the first step before processing regular issue. In case the field trials are successful, the RBI plans to issue the notes on a regular basis in these two denominations. However, the old notes in ₹10 and ₹20 denominations will not be withdrawn instantly. The RBI plans to issue polymer notes along with the existing paper banknotes.
The polymer currency notes are made up of biaxially oriented polypropylene (BOPP). These are unique plastics as compared to other paper currency. They have been made in such a way that they can tolerate more wear and tear than regular paper currency. They are waterproof and tear-proof.
Another advantage is the increased longevity of the polymer banknotes. As stated in the passage, polymer currency notes have an average lifespan of two to four times that of paper currency notes. This may lower the need for replacement due to wear and tear. Although the initial cost of production is high, their longevity may eventually prove cost-effective.
Polymer banknotes can also have advanced security features such as transparent windows, holograms, colour-shifting ink, and intricate design. This is because these types of notes are difficult to forge.
These notes are more resistant to water, dust, and moisture as well. It may be helpful for them to stay in good condition under conditions of humidity and wetness. The smooth surface of these polymer banknotes cannot accumulate bacteria or other contaminants.
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