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13 August 2026

Polymer banknote field trials

The introduction of polymer banknotes is a significant policy intervention by the RBI that relates to currency management and economic infrastructure, serving as useful context for questions on monetary policy or technological adoption in governance.

1 min read 1 questions 1 prelims

Notes

  • Government of India has approved the introduction of one billion polymer banknotes each for ₹10 and ₹20 denominations.
  • The initiative is intended for field trials, followed by potential regular issuance.
  • The proposal was initiated by the Reserve Bank of India (RBI) under Section 25 of the RBI Act, 1934.
  • Polymer notes will be issued alongside existing paper substrate-based banknotes.
  • The procurement process is currently in the initial stage, with no fixed timeframe or expenditure estimate determined yet.

Questions

  1. Discuss the rationale behind the transition towards polymer-based currency in India and the regulatory framework governing the issuance of banknotes by the Reserve Bank of India. 150 words
    Attempt this — 150 words in 8 min
    0 / 150 words 8:00

Prelims

  1. Under which section of the RBI Act, 1934, does the Reserve Bank of India derive the authority to propose the design and material of banknotes?

Syllabus

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Sources

250words.in · https://250words.in/daily/2026-08-13/polymer-banknote-field-trials