India to trial polymer Rs 10 and Rs 20 notes as RBI prepares first plastic currency
The government has cleared the RBI to produce two billion polymer notes - one billion each of Rs 10 and Rs 20 - for field testing, while confirming paper money will remain in circulation.
In a recent Lok Sabha briefing, the finance ministry disclosed that the Reserve Bank of India has been authorized to manufacture an initial lot of two billion polymer banknotes - one billion each of Rs 10 and Rs 20 - for field trials. This marks the first use of plastic currency in India, reviving a plan first floated in 2012. The RBI will continue to issue paper notes alongside the new polymer series, and there is no intention to phase out the traditional substrate.
A tender issued by Bharatiya Reserve Bank Note Mudran Pvt Ltd seeks suppliers for security-enhanced polymer sheets, with strict prohibitions on materials from China or Pakistan. The rollout is expected to take several months as the authorities verify durability and anti-counterfeit features. The policy arrives as the central bank’s printing expenditure dropped sharply, even as the total value of cash in circulation grew by 12 % over the past year.
Why it matters
Introducing polymer notes could lower long-term printing costs and improve durability of India's most needed cash denominations.
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