India Approves ₹10, ₹20 Polymer Note Trials
The government has approved the Reserve Bank of India’s proposal to introduce polymer banknotes in ₹10 and ₹20 denominations for large-scale field trials. One billion notes of each denomination — two billion notes in total — are proposed for testing before any decision on regular issuance.
RBI to Test Two Billion Polymer Banknotes
The RBI submitted the proposal to the government following a recommendation from its Central Board under provisions of the Reserve Bank of India Act, 1934.
The plan covers one billion ₹10 polymer notes and one billion ₹20 polymer notes. Regular issuance of these banknotes would be considered only after the field trials are successfully completed.
The procurement process for the proposed polymer banknotes is currently at an initial stage.
Paper ₹10 and ₹20 Notes Will Continue
The introduction of polymer banknotes does not mean that existing paper currency will be withdrawn. The RBI has proposed that polymer and paper-based banknotes should circulate alongside each other during the testing phase.
There is currently no proposal to replace India’s paper currency entirely with polymer notes.
The trials will allow the RBI to assess how polymer notes perform under everyday circulation conditions, including durability and handling, before deciding on wider use.
Polymer Notes Expected to Last Longer
One of the main reasons for testing polymer currency is its longer lifespan compared with conventional paper banknotes.
Polymer notes are generally more resistant to moisture, dirt and routine wear, which could reduce the frequency at which damaged notes need to be replaced.
The government has also indicated that it is too early to assess whether polymer banknotes would have any impact on digital payments. Physical currency and digital payment systems are expected to continue functioning as complementary payment options.
