RBI to conduct field trials of Rs 10 polymer notes in five cities

NEW DELHI: The Reserve Bank has proposed to conduct field trials of Rs 10 polymer banknotes in five cities including Shimla and Cochin, Minister of State for Finance Namo Narain Meena today said.

"It has been decided by the Government of India and Reserve Bank of India to introduce Rs 10 notes in polymer /plastics on a field trial basis," Meena said in a written reply to Rajya Sabha.

He said the RBI has informed that field trial is proposed to be conducted at five places -- Jaipur, Shimla, Bhubaneshwar Mysore and Cochin, keeping in view of "the varied geographical locations and climatic conditions."

The expenditure proposed to be incurred on the field trial would be finalised as per the guidelines, he added.

Polymer notes have relatively longer life compared to the prevailing paper banknotes and may help in checking counterfeiting.

Polymer notes were first introduced in Australia to safeguard against counterfeiting of currency.

Besides Australia, other countries which have introduced plastic notes include New Zealand, Papua New Guinea, Romania, Bermuda, Brunei and Vietnam.