CURRENT AFFAIRS | 24 JULY 2026
The Reserve Bank of India, through its subsidiary BRBNMPL, has revived its intention to replace paper currency notes with more durable plastic (polymer) banknotes, some 15 years after a similar trial was first announced. Polymer notes last longer, resist soiling and are harder to counterfeit — but India may have to import the sheets used to make them.
Constitutional & Legal Framework
- RBI & currency: Under the RBI Act, 1934, the Reserve Bank has the sole right to issue banknotes in India; the Re-1 note is issued by the Government of India.
- Article 246 & currency: ‘Currency, coinage and legal tender’ is in the Union List (Entry 36), a Union subject.
- BRBNMPL: Bharatiya Reserve Bank Note Mudran Private Limited, an RBI subsidiary, prints a large share of India’s banknotes.
The CLAT Angle
CLAT economy questions often test who issues currency (RBI, except the Re-1 note issued by the Government), the note-issuing framework under the RBI Act, 1934, and the minimum reserve system. A polymer-notes question may ask about durability, counterfeiting or the role of BRBNMPL. Link ‘legal tender’ to the Union List.
Key Facts at a Glance
| Move | RBI/BRBNMPL revive plan for plastic (polymer) banknotes |
| Advantages | Longer life, soil-resistant, harder to counterfeit, lower printing cost |
| Concern | Polymer sheets may need to be imported |
| Issuing authority | RBI under the RBI Act, 1934 (Re-1 note by Govt of India) |
| Global users | Australia (first, 1988), UK, Canada, Vietnam, Malaysia |
Memory Hook: “POLY”
Polymer notes: Outlast paper, Less counterfeiting, Yet may be imported.
Test Yourself: 10-Question Quiz
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Practice Quiz — 10 CLAT-Style Questions
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