Newsbreak Confirmed! RBI Governor Says Polymer Currency Notes Likely To Be Launched By FY28

Reserve Bank of India (RBI) Governor Sanjay Malhotra said on Wednesday, Aug. 5, that the central bank hopes to launch polymer currency notes by start of FY28. '' We will test polymer bank notes in various conditions. Polymer bank notes increase durability, lifespan,'' said the RBI Governor while addressing today's post-monetary policy press conference. The RBI Governor's comments confirmed NDTV Profit's newsbreak on July 17 when official sources told the channel about the first pilot rollout.

On July 17, sources told NDTV Profit that the RBI is set to begin the first pilot rollout of polymer banknotes soon, marking the next phase in the central bank's plan to introduce the new-generation currency. The pilot is likely to begin with smaller — Rs 10 and Rs 20 denomination banknotes. Based on the outcome of the trial, the RBI is expected to move towards a full-scale rollout from 2027, sources said.  The introduction of polymer banknotes will not replace the existing paper currency.

Instead, polymer and paper banknotes will coexist, with the new notes being introduced in a phased manner while the current paper notes continue to remain in circulation, they underlined. The move gathers momentum after the RBI's note-printing arm floated a global Expression of Interest (EOI) for the manufacture and supply of polymer substrate sheets, the specialised material used to print polymer banknotes. Countries including Australia, Canada, UK, and New Zealand, have adopted polymer currency.

According to the tender document, global manufacturers have been invited to supply polymer substrate embedded with advanced security features designed to enhance the durability of banknotes and strengthen protection against counterfeiting. The last date for submitting bids is August 18  Polymer banknotes are considered significantly more durable than conventional paper currency, lasting longer in circulation and being more resistant to moisture, dirt and wear and tear. 

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