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Topic 184 · Economy, Budget & Banking

RBI polymer notes, e-cheques and faster cheque clearing

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Revise the 12 points first Book 1 RATNA

Core Trigger: On 5 August 2026 Governor Sanjay Malhotra said polymer Rs 10 and Rs 20 notes would circulate from FY28.
Pilot Scope: They will circulate alongside paper notes, not replace them.
Current Head: Sanjay Malhotra, appointed December 2024, is RBI Governor.
Key Numbers: Rs 10 and Rs 20 notes are about 25% of note volume but only 1.4% of the value in circulation.
Approval: The Lok Sabha was told on 27 July 2026 that field trials of one billion notes per denomination were approved.
Cheque Clearing: From 4 October 2025 cheques clear continuously; from 3 January 2026 drawee banks must confirm within three hours.
India Link: Payments Vision 2028 (March 2026) proposes digitally signed e-cheques, a proposal rather than a live product.
Operator: NPCI runs the grid-based Cheque Truncation System at New Delhi since 10 December 2013.
Founded: The Cheque Truncation System began as a pilot in the National Capital Region on 1 February 2008.
Landmark: Australia issued the world's first circulating polymer banknote in 1988 and had switched fully by 1996.
Statute: Section 6 of the Negotiable Instruments Act, 1881 defines a cheque, including truncated and electronic forms.
Doctrine: Under Section 138, dishonour for insufficient funds draws up to two years' imprisonment or a fine up to twice the amount.

Question 1 of 10

From which financial year will polymer Rs 10 and Rs 20 notes circulate?

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Answer: (B) FY28

Core Trigger: On 5 August 2026 Governor Sanjay Malhotra said polymer Rs 10 and Rs 20 notes would circulate from FY28.From Book 1 RATNA, topic 184, point 1

Question 2 of 10

How will the polymer notes circulate?

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Answer: (D) Alongside paper notes

Pilot Scope: They will circulate alongside paper notes, not replace them.From Book 1 RATNA, topic 184, point 2

Question 3 of 10

Who is RBI Governor, appointed in December 2024?

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Answer: (C) Sanjay Malhotra

Current Head: Sanjay Malhotra, appointed December 2024, is RBI Governor.From Book 1 RATNA, topic 184, point 3

Question 4 of 10

Rs 10 and Rs 20 notes are about 25% of note volume but what share of value?

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Answer: (D) 1.4%

Key Numbers: Rs 10 and Rs 20 notes are about 25% of note volume but only 1.4% of the value in circulation.From Book 1 RATNA, topic 184, point 4

Question 5 of 10

Field trials of how many notes per denomination were approved, the Lok Sabha was told?

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Answer: (A) One billion

Approval: The Lok Sabha was told on 27 July 2026 that field trials of one billion notes per denomination were approved.From Book 1 RATNA, topic 184, point 5

Question 6 of 10

Consider: 1. Cheques have cleared continuously since 4 October 2025. 2. Drawee banks must confirm within six hours from 3 January 2026. Which is/are correct?

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Answer: (A) Only 1

Cheque Clearing: From 4 October 2025 cheques clear continuously; from 3 January 2026 drawee banks must confirm within three hours.From Book 1 RATNA, topic 184, point 6

Question 7 of 10

Which body operates the grid-based Cheque Truncation System?

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Answer: (C) NPCI

Operator: NPCI runs the grid-based Cheque Truncation System at New Delhi since 10 December 2013.From Book 1 RATNA, topic 184, point 8

Question 8 of 10

Where did the Cheque Truncation System begin as a pilot on 1 February 2008?

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Answer: (B) National Capital Region

Founded: The Cheque Truncation System began as a pilot in the National Capital Region on 1 February 2008.From Book 1 RATNA, topic 184, point 9

Question 9 of 10

In which year did Australia issue the world's first circulating polymer banknote?

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Answer: (D) 1988

Landmark: Australia issued the world's first circulating polymer banknote in 1988 and had switched fully by 1996.From Book 1 RATNA, topic 184, point 10

Question 10 of 10

Consider: 1. Section 6 of the Negotiable Instruments Act, 1881 defines a cheque. 2. The definition excludes electronic cheques. Which is/are correct?

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Answer: (A) Only 1

Statute: Section 6 of the Negotiable Instruments Act, 1881 defines a cheque, including truncated and electronic forms.From Book 1 RATNA, topic 184, point 11

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