The central bank already received the government’s approval to introduce one billion pieces of Rs 10 and Rs 20 polymer notes each for field trials, which will be followed by regular issuance after the successful completion of the trials.
“We are targeting that they are in circulation — if everything goes as per plan — in the beginning of the next financial year,” Governor Sanjay Malhotra said Wednesday.
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Polymer notes enhance the durability for bank notes which is especially relevant for lower denomination notes where the velocity is higher and therefore the lifespan is lower.
He said that polymer notes have been in circulation for more than 30 years in various countries and it is found that the life is three to four times that of the paper substrate, which is currently in vogue.
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“This is still a pilot, we will test, check as to how they perform in the Indian conditions, climate and other infrastructure that we have put in place and thereafter we will see if we need to further scale it as it is or with changes,” Malhotra said.