Government Approves RBI Pilot for Plastic Currency Notes

The government has cleared an RBI pilot project to introduce 1 billion pieces each of ₹10 and ₹20 polymer banknotes to test their durability compared to traditional paper currency.

The trial involves a total investment of ₹3,000 crore, though the Finance Ministry emphasized that there is currently no proposal to replace existing paper notes with plastic ones.

The move aims to reduce the cost of currency replacement, as polymer notes are expected to have a significantly longer lifespan in circulation than current cotton-based notes.