RBI to trial Rs 10, Rs 20 plastic notes worth Rs 3,000 crore; Centre says no proposal to replace paper notes

📌 Summary:

• The RBI's field trial of polymer (plastic) notes will introduce 100 crore pieces each of Rs 10 and Rs 20 notes, worth a total of Rs 3,000 crore, MoS Finance Pankaj Chaudhary told the Lok Sabha
• This is the first official confirmation of the denominations targeted; the government has approved the RBI board's proposal for trials and later regular issuance
• Polymer notes will be issued alongside paper notes — there is no proposal to replace paper currency
• On July 17, BRBNMPL (an RBI subsidiary) floated a global tender for 3.4 crore polymer sheets as an 'immediate requirement'
• Rs 10 and Rs 20 notes make up nearly a quarter of all notes by pieces but only 1.3% by value; a 2009 plastic-note trial failed due to 'technical infirmities'
• Australia issued the world's first plastic banknotes in 1988; over 50 countries now use them for greater durability

📝 Prelims Facts:

• BRBNMPL (Bharatiya Reserve Bank Note Mudran Pvt Ltd) is a wholly-owned RBI subsidiary that prints currency
• Polymer notes are more durable and harder to counterfeit than paper notes
• India's earlier plastic-note pilot (2009) was planned for Kochi, Mysuru, Shimla, Jaipur and Bhubaneswar — chosen for varied climatic zones

🔑 Key Term: Polymer banknote — a currency note printed on a thin plastic (polymer) substrate, offering longer life and better security than cotton-paper notes.