RBI plans to roll out polymer banknotes by next fiscal year
The Reserve Bank of India will begin issuing polymer Rs 10 and Rs 20 notes at the start of the next financial year, pending pilot results.
At a post-monetary-policy press briefing, RBI governor Sanjay Malhotra said the central bank’s polymer-note project is being tested with up to one billion Rs 10 and one billion Rs 20 notes. The government has permitted the RBI to print these notes for field trials, but there is no plan to phase out paper money entirely. The pilot will assess how the polymer notes hold up under India’s climate and existing cash-handling infrastructure.
Success could lead to a broader issue at the beginning of the next financial year. Polymer notes promise greater durability, lower lifecycle costs and enhanced security against counterfeiting. Supplier selection will follow a global tender issued by the RBI’s printing subsidiary, Bharatiya Reserve Bank Note Mudran Pvt Ltd, with strict eligibility criteria.
Why it matters
Longer-lasting, harder-to-counterfeit notes could reduce currency replacement costs and improve cash security in India.
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