Government Clears Polymer Currency Trial, ₹10 And ₹20 Notes To Circulate Alongside Paper Money
The government has approved field trials of one billion polymer notes each in Rs 10 and Rs 20 denominations, which will circulate alongside paper currency.
The government has approved field trials of one billion polymer notes. |
New Delhi: The government has approved a plan to introduce one billion polymer banknotes each in the Rs 10 and Rs 20 denominations for field trials, Parliament was informed on Tuesday.
Finance Minister Nirmala Sitharaman said in a written reply to the Rajya Sabha that the Reserve Bank of India had submitted the proposal after receiving a recommendation from its central board.
Polymer Note Trials
The proposal was sent under Section 25 of the Reserve Bank of India Act, 1934. If the field trials are successful, polymer notes may later be issued regularly in both denominations.
Polymer banknotes will circulate alongside existing paper notes. However, the procurement process is still at an early stage. Therefore, the launch date and expenditure cannot yet be estimated.
Inflation Stays Below Target
In a separate reply, Sitharaman said average retail inflation fell from 5.4 percent in 2023-24 to 4.6 percent in 2024-25 and 2.1 percent in 2025-26.
Retail inflation rose to 3.9 percent in the first quarter of 2026-27 because of higher global energy prices, the West Asia crisis, seasonal vegetable price increases and expected unfavourable El Niño conditions. It remained below the RBI’s 4 percent target.
Tax Relief Measures
The minister said GST changes had reduced tax rates on several goods and services. The new structure includes rates of 5 percent and 18 percent, besides a special 40 percent rate for selected goods and services.
The Union Budget 2026-27 also lowered Basic Customs Duty on several products to reduce input costs, support manufacturing and improve export competitiveness.
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Other steps included lower duties on crude edible oils and masur, besides a Rs 10-a-litre cut in excise duty on petrol and diesel in March 2026.
The government also exempted annual income up to Rs 12 lakh from income tax. For salaried people, the effective limit is Rs 12.75 lakh after the standard deduction.
Sitharaman said these measures supported household spending. Per capita private consumption expenditure grew 6.8 percent in 2025-26, compared with 4.8 percent in 2023-24.
(With PTI Inputs)
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