Polymer Notes in India: RBI To Test Plastic INR 10 and INR 20 Banknotes, Paper Currency To Remain
The central government approved an RBI proposal to pilot one billion each of INR 10 and INR 20 polymer banknotes for field trials to test durability. These notes will coexist with paper currency, not replace it. The approval was confirmed by Minister of State for Finance Pankaj Chaudhary in a written reply to queries in the Lok Sabha.
India is taking its first major step toward introducing polymer banknotes, with the central government approving a Reserve Bank of India (RBI) proposal to pilot INR 10 and INR 20 notes made of plastic substrate. The initial rollout will see one billion pieces of each denomination distributed for field trials to assess their performance under real-world circulation conditions before any decision on wider issuance is made. The approval was confirmed by Minister of State for Finance Pankaj Chaudhary in a written reply to queries in the Lok Sabha.
Durability and the Case for Polymer
The move toward polymer substrate is primarily driven by longevity. According to international studies cited by the central bank, polymer banknotes last significantly longer than traditional cotton-paper currency. RBI's Polymer Currency Notes Trial: What Are Polymer Notes and How Do They Work?
Given India's massive scale of currency in circulation, longer-lasting notes can substantially reduce replacement costs and printing volumes over time. The upcoming field trials are intended to evaluate how well the plastic material withstands local weather conditions, handling habits, and daily wear and tear.
Impact on Digital Payments and Coexistence
While digital transactions have expanded rapidly across the country, the RBI has adopted a cautious approach regarding potential shifts in consumer behaviour. The central bank indicated that any discernible impact on digital payment systems can only be evaluated after the polymer notes enter regular, widespread circulation. Is RBI Switching to Plastic Currency? Global Tender Signals Polymer Note Trial.
Furthermore, the RBI emphasised that physical banknotes and digital payment systems are complementary methods rather than competing tools, with both remaining simultaneously available to the public.
(The above story first appeared on LatestLY on Jul 27, 2026 11:06 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).
