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NEW DELHI: The Central Government has approved the Reserve Bank of India’s (RBI) proposal to conduct field trials of polymer-based ₹10 and ₹20 banknotes in selected locations across the country, marking a significant step towards testing a more durable form of currency in India. However, the government has clarified that there is no proposal to replace existing paper currency, and current ₹10 and ₹20 notes will continue to remain in circulation. (Source: Ministry of Finance; The Economic Times)
The approval was confirmed by Minister of State for Finance Pankaj Chaudhary in a written reply in Parliament on Monday. Under the pilot programme, the RBI will issue around 100 crore (1 billion) polymer ₹10 notes and 100 crore (1 billion) polymer ₹20 notes for circulation in selected regions to evaluate their durability, security features, machine compatibility and overall performance under Indian conditions before any decision on wider adoption. (Source: Ministry of Finance; The Economic Times)
According to the government, the field trials will assess the notes’ durability, security features, handling characteristics and compatibility with ATMs and cash-processing systems. The results of these trials will help determine whether polymer banknotes should be introduced on a larger scale. (Source: Ministry of Finance; The Economic Times)
Polymer banknotes are printed on a specialised polymer substrate instead of traditional cotton-based paper. They are more resistant to moisture, dirt and tearing, generally last longer in circulation, and can incorporate advanced anti-counterfeiting features such as transparent windows and complex security elements. Although polymer notes cost more to produce initially, their longer lifespan can reduce replacement costs over time. (Source: The Economic Times)
The approval comes days after Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL), the RBI’s currency-printing subsidiary, invited global expressions of interest (EOI) for the supply and manufacture of polymer banknote substrate, signalling preparations for the pilot programme. (Source: India Today)
This is not India’s first attempt at introducing polymer currency. India previously conducted a limited field trial of polymer ₹10 banknotes in 2013 across Kochi, Mysuru, Jaipur, Bhubaneswar and Shimla. The pilot was not expanded, making the latest approval the country’s largest planned polymer banknote trial. (Source: RBI; Polymer Banknote records)
Polymer banknotes are already used in more than 60 countries, including Australia, Canada, the United Kingdom, New Zealand and Singapore, where they have helped improve note durability and strengthen counterfeit protection. (Source: Polymer Banknote records)
Officials have emphasised that the current approval is limited to field trials, and no decision has been taken on replacing existing paper currency or introducing polymer notes nationwide.
Existing paper ₹10 and ₹20 banknotes will continue to remain legal tender and circulate alongside the trial notes. Any wider rollout will depend on the outcome of the field trials, and no timeline has been announced by the government or the RBI. (Source: Ministry of Finance; The Economic Times)
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