When Will RBI Launch Polymer Currency Notes? Governor Sanjay Malhotra Shares Timeline
RBI Governor Sanjay Malhotra said the central bank is targeting the rollout of polymer currency notes by FY28, with field trials currently underway. The pilot programme involves INR 10 and INR 20 denomination notes to assess their durability and suitability under Indian conditions. The government has clarified that polymer notes will circulate alongside paper currency if introduced.
The Reserve Bank of India (RBI) is aiming to introduce polymer currency notes by FY28, RBI Governor Sanjay Malhotra said on Wednesday, August 5, adding that field trials are currently underway to evaluate the notes before they are introduced into wider circulation.
Speaking to IANS after the Monetary Policy Committee (MPC) outcome media briefing, Malhotra said the central bank is continuing its pilot programme to test polymer banknotes under real-world conditions. Polymer Notes in India: RBI To Test Plastic INR 10 and INR 20 Banknotes, Paper Currency To Remain.
RBI Conducting Pilot Programme
"There is still a pilot going on for polymer notes," the RBI Governor said. "We will test the currency before bringing it to the market," he told IANS. Malhotra said the RBI will evaluate the outcome of the field trials before taking a final decision on broader circulation, adding that the central bank is targeting the rollout of polymer notes by FY28.
The Governor's remarks come days after the Finance Ministry informed Parliament that the government had approved the RBI's proposal to conduct field trials of polymer currency notes in the INR 10 and INR 20 denominations. RBI's Polymer Currency Notes Trial: What Are Polymer Notes and How Do They Work?
According to the government, the RBI plans to issue one billion pieces each of INR 10 and INR 20 polymer notes as part of the pilot programme to assess their durability and suitability under Indian conditions.
Why RBI Is Testing Polymer Notes
The RBI has said polymer banknotes are more durable than conventional paper notes, particularly for lower denominations that experience frequent handling and wear.
The central bank has also highlighted that polymer notes can incorporate advanced security features, including transparent windows and enhanced anti-counterfeiting elements. Officials believe these features could help reduce replacement costs while improving the security of currency in circulation.
Paper Notes Will Continue
The government has clarified that there is currently no proposal to replace paper currency entirely.If introduced, polymer banknotes will circulate alongside existing paper notes rather than replacing them immediately.
The RBI has also stated that any decision on wider adoption will depend on the results of the field trials and operational assessments conducted under different climatic and usage conditions across India.
(The above story first appeared on LatestLY on Aug 05, 2026 01:16 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).