The government has approved the introduction of one billion polymer banknotes each in the 10 and 20 denominations for field trials, Parliament was informed on Tuesday.
The Reserve Bank of India (RBI), based on the recommendation of its Central Board, had submitted a proposal to the government under Section 25 of the Reserve Bank of India Act, 1934.
The proposal covers the introduction of one billion pieces each of ₹10 and ₹20 polymer notes for field trials. If the trials are successful, polymer banknotes in these two denominations may be issued regularly, the Finance Minister informed Parliament.
The move is aimed at testing the use and durability of polymer currency notes in India before any wider rollout.