INDIA APPROVES FIELD TRIALS FOR 1 BILLION POLYMER BANKNOTES OF ₹10 AND ₹20

The government has approved a proposal to roll out one billion polymer banknotes each in the ₹10 and ₹20 denominations for field trials, Parliament was informed on Tuesday.

The announcement marks a significant step towards testing an alternative to India's current paper-based currency system, at least for these two lower-value denominations.

The Reserve Bank of India (RBI) had forwarded the proposal to the government under Section 25 of the RBI Act, 1934, based on a recommendation from its central board.

Under this provision, the RBI is required to seek prior approval from the central government before introducing new currency designs or formats.

The plan involves testing one billion pieces each of ₹10 and ₹20 polymer notes in the field first. If these trials are successful, the RBI intends to move towards regular issuance of polymer banknotes in these two denominations.

The Finance Minister shared this update in a written reply to the Rajya Sabha, responding to a question on the status of polymer currency in India.

Notes To Coexist

The government has given its go-ahead to the proposal, the Minister confirmed. However, this does not mean paper currency in these denominations will be phased out anytime soon.

According to the RBI, the polymer notes are proposed to be issued alongside the existing paper substrate-based banknotes, rather than replacing them outright.

This suggests a phased, parallel approach, allowing the central bank to assess how polymer notes perform in real-world circulation before making any broader decisions on their adoption across other denominations.

Polymer banknotes are typically made from a thin, flexible plastic film rather than the cotton-based paper used for conventional currency.

They are widely regarded as more durable, harder to counterfeit, and more resistant to dirt and moisture compared to paper notes, which is why several countries, including Australia, the UK, and Singapore, have adopted them for at least part of their currency systems.

India has experimented with polymer notes on a limited scale in the past, including a pilot in select cities some years ago, but a full field trial of this scale had not been rolled out until now.

No Timeline Yet

Despite the approval, several details remain undecided. The RBI has indicated that procurement for the project is still at an early stage. As a result, the Minister said it is not yet possible to specify a firm timeline for the launch of the polymer notes or estimate the costs likely to be incurred on the exercise.

This suggests that while the policy decision has been made, the practical rollout, including sourcing the polymer substrate, finalising printing arrangements, and identifying trial locations, is still some way off.

The move comes as part of the RBI's ongoing efforts to modernise India's currency infrastructure and improve the lifespan and security features of banknotes in circulation.

(With input from agencies)

2026-08-11T09:08:35Z