The Government of India has formally approved a proposal by the Reserve Bank of India (RBI) to initiate field trials for polymer banknotes in the ₹10 and ₹20 denominations, marking a strategic step toward introducing more durable currency. In a written response to the Lok Sabha, Minister of State for Finance Pankaj Chaudhary confirmed that the central bank plans to print one billion pieces of each denomination on a plastic-based substrate to evaluate their resilience, security features, and performance under India’s diverse climatic conditions. Because lower-denomination paper bills experience high transaction velocity and rapid physical wear, polymer notes—which are already utilized in nations such as Australia, Canada, and the United Kingdom—offer significantly longer circulation life alongside superior resistance to moisture, dirt, and tearing. Crucially, the government clarified that the pilot project does not signify a phase-out or withdrawal of existing paper currency; rather, polymer notes will co-circulate alongside conventional paper notes if the trials prove successful. Ahead of the pilot rollout, RBI subsidiary Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL) floated a global tender to procure opacified polymer substrate sheets. Officials also emphasized that introducing plastic banknotes will not displace digital transactions, framing cash and digital payment systems as complementary mechanisms serving India’s growing economy.
RBI to Conduct Field Trials for ₹10 and ₹20 Polymer Notes Following Government Approval
