- RBI plans to launch polymer currency notes by the start of FY28
- Pilot rollout of Rs 10 and Rs 20 polymer notes expected soon
- Polymer notes will coexist with paper currency in a phased approach
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.
Pilot Rollout Of Polymer Banknotes
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.
RBI MPC Repo Rate Verdict
In an expected move, the RBI on Wednesday kept key interest rates unchanged for the third time in a row this financial year as it weighed the impact of uncertain energy prices and supply disruptions caused by the ongoing West Asia crisis. Announcing the third bi-monthly monetary policy for the current fiscal, RBI Governor Sanjay Malhotra said the Monetary Policy Committee (MPC) has unanimously decided to retain short-term lending rate or repo rate at 5.25 per cent with a neutral stance.
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