India has so far used paper currency notes since the beginning of rupee note circulation. Now, plastic currency notes are set to enter circulation for the first time, starting with Rs 10 and Rs 20 denominations.
The Central government has granted approval after accepting the Reserve Bank of India’s recommendation to release the notes on a pilot basis. The RBI has made arrangements to issue 100 crore notes each of Rs 10 and Rs 20.
Officials expect plastic notes to last longer than paper notes and to be less prone to damage, reducing the need for frequent replacement.
The government has clarified that existing paper notes will not be withdrawn. Both plastic and paper notes will circulate together, and there is currently no plan to fully replace paper currency as the initiative remains in its early stage.
