{
  "type": "article",
  "title": "RBI And Govt Move To Replace 10 And 20 Rupee Notes With Plastic: The Complete Legal Framework",
  "summary": "The Reserve Bank of India and the central government are preparing to print 10 and 20 rupee notes on plastic instead of paper. The process involves specific legal provisions under the Reserve Bank of India Act, 1934.",
  "content": "The last decade has witnessed significant transformations in India's currency landscape. Initially, demonetization pulled 500 and 1,000 rupee notes out of circulation, followed by the gradual withdrawal of 2,000 rupee notes from the market. Now, the Reserve Bank of India and the government are turning their attention toward 10 and 20 rupee notes. While there is no immediate intention to completely withdraw these denominations, preparations are underway to print them on plastic or polymer instead of traditional paper. Consensus has already been established between the government and the central bank on this matter. However, this raises questions about the legal provisions and statutory sections that authorize the issuance of such notes, as well as the collaborative procedure followed by the Reserve Bank and the government before any currency is printed.\n\nThe Legal Process And The Reserve Bank Of India Act\nThe operational process of printing any currency note is solely managed by the Reserve Bank of India. For the introduction of 10 and 20 rupee polymer notes, the central board of the Reserve Bank submitted a formal proposal to the government under Section 25 of the Reserve Bank of India Act, 1934. This proposal requested the printing of 1 billion polymer notes of 10 and 20 denominations as a trial run to be introduced into the market. If this pilot project proves successful, these plastic notes may continue to remain in regular circulation moving forward. The central government has already granted its official approval to this proposal.\n\nThe Shared Role Of The Government And The Central Bank\nAlthough currency management and bank notes fall under the purview of the Reserve Bank, the central bank cannot arbitrarily print an unlimited amount of currency notes on its own accord. A well-defined legal framework governs this process, wherein the central government plays an essential role. The central board of the Reserve Bank must first draft a proposal for printing notes and submit it to the government, proceeding only after receiving central clearance. In essence, while the operational execution is carried out entirely by the Reserve Bank, it remains impossible without the explicit sanction of the central government.\n\nKey Legal Sections Governing Currency Regulation\nSection 22 of the Reserve Bank of India Act, 1934 grants the Reserve Bank the exclusive authority to issue bank notes across the country. Under Section 25 of the same legislation, the design, dimensions, color scheme, and security features of any currency note are finalized by the central government based on recommendations put forward by the Reserve Bank. Furthermore, Section 26(2) of the Act is utilized to terminate the legal tender status of any specific note. This revocation requires coordinated recommendations from both the central government and the board of the Reserve Bank.\n\nThe Procedure For Introducing Or Replacing Notes\nWhenever a new currency note is introduced or an existing one is replaced, a rigorous procedure is strictly followed. First, the Reserve Bank evaluates the physical condition of current currency in circulation and assesses the overall liquidity demand within the economy, alongside determining whether enhanced security features need to be embedded in the new notes. The central board subsequently drafts a formal proposal for issuing new denominations or withdrawing old ones. Once design specifics and regulatory requirements receive clearance from the central government, the notes are printed in specified quantities across the authorized printing presses of the Reserve Bank. In a similar manner, soiled, torn, or damaged notes are systematically removed from circulation, being permanently destroyed using specialized machinery under the Clean Note Policy of the Reserve Bank.\n\nWhat this means for you\nAcross India: Ordinary citizens will soon encounter more durable, polymer-based 10 and 20 rupee notes introduced on a trial basis, improving currency longevity against wear and tear.\n\nQuestions & Answers\n\n1. What material will be used to print the upcoming 10 and 20 rupee notes?\nThese notes are planned to be printed on plastic or polymer instead of traditional paper.\n\n2. Under which legal provision was the note printing proposal submitted?\nThe proposal was submitted under Section 25 of the Reserve Bank of India Act, 1934.\n\n3. How many polymer notes are proposed to be printed for the trial?\nThe proposal requests the printing of 1 billion polymer notes of 10 and 20 denominations on a trial basis.\n\n4. Who holds the authority to issue bank notes in the country?\nSection 22 of the Reserve Bank of India Act, 1934 grants the Reserve Bank the authority to issue bank notes.\n\n5. What happens to soiled and damaged currency notes?\nSoiled and torn notes are permanently destroyed using specialized machinery under the Clean Note Policy of the Reserve Bank.",
  "url": "https://trendkia.com/en/business/plastika-ke-aenge-10-aura-20-rupaye-ke-nae-nota-janie-bharatiya-karensi-badalane-ka-pura-kanuni-niyama-11258",
  "category": "Business",
  "publishedAt": "2026-07-28",
  "tags": [
    "Reserve Bank of India",
    "plastic currency",
    "Indian economy",
    "currency printing",
    "RBI Act",
    "monetary policy"
  ],
  "language": "en",
  "site": "TrendKia"
}