India approves field trial of Rs 10 and Rs 20 polymer banknotes

India is moving toward polymer currency after the government endorsed the Reserve Bank of India’s request to produce one billion Rs 10 and one billion Rs 20 polymer notes for a field trial. The proposal, submitted under Section 25 of the RBI Act, was affirmed by Finance Minister Nirmala Sitharaman in a written response to the Rajya Sabha, stating that polymer and paper notes will coexist as legal tender. RBI Governor Sanjay Malhotra indicated that, if the pilot meets expectations, the new notes could enter circulation at the beginning of the next financial year.

The polymer format is expected to extend the lifespan of lower-denomination notes, which experience high turnover. Procurement is still in its early stages, so exact rollout dates and costs remain unclear. The trial reflects lessons from other nations that have used polymer notes for decades, where durability can be two to four times greater than paper. The government also highlighted broader economic measures, including GST reforms and tax exemptions, to support household purchasing power.