RBI’s New Currency Plan: Government Approves Polymer Note Trials for ₹10 and ₹20
RBI's New Currency Plan: Government Approves Polymer Note Trials for ₹10 and ₹20
28 July, 2026: The Reserve Bank of India (RBI) has received the Centre’s approval to begin field trials of polymer banknotes in the ₹10 and ₹20 denominations, marking a significant step in its efforts to enhance the durability of India’s currency. The pilot project involves the issuance of one billion polymer notes each of ₹10 and ₹20, after which the central bank will assess their performance before deciding on regular circulation.
Minister of State for Finance Pankaj Chaudhary informed Parliament that the proposal was approved following recommendations from the RBI’s Central Board under Section 25 of the Reserve Bank of India Act, 1934. He clarified that the polymer notes are being introduced solely for field trials and that no decision has been taken on replacing existing paper currency with polymer-based banknotes.
According to the government, the trial will help the RBI evaluate how polymer notes perform under Indian conditions, including their durability, circulation, public acceptance and any impact on the country’s rapidly expanding digital payment ecosystem. A final decision on their wider use will be made only after the results of the pilot are thoroughly reviewed.
Polymer banknotes are considered more durable than conventional paper notes and are believed to have a much longer lifespan. They are also more resistant to moisture, dirt and physical wear, reducing the need for frequent replacements. The RBI had previously explored introducing polymer currency in 2012 to improve the shelf life of banknotes, but the proposal was shelved due to technological challenges.
The central bank has maintained that polymer notes, if introduced, will circulate alongside paper currency rather than replace it immediately. Officials have reiterated that the ongoing initiative is only a preliminary exercise to study the feasibility of the new material.
Around 60 countries across the world have already adopted polymer banknotes. Australia was the first to introduce them in 1988, followed by nations such as Singapore, Indonesia, Thailand, Malaysia, Canada and Romania.
The move also comes as the cost of printing conventional currency continues to rise. According to the RBI’s Annual Report for FY25, expenditure on securely printing paper banknotes increased to ₹6,372.8 crore from ₹5,101.4 crore in the previous financial year, largely due to higher printing requirements.
If the trials are successful, polymer banknotes could help extend the life of low-value currency notes, reduce printing costs and improve the overall efficiency of India’s currency management system, while existing paper notes continue to remain in circulation.
