Government Approves RBI's Plan to Introduce Rs 10 and Rs 20 Polymer Notes on Trial Basis

THE CENTRAL GOVERNMENT has given its assent to the Reserve Bank of India’s (RBI) plan to introduce Rs 10 and 20 polymer notes, also known as plastic currency, into the Indian economy on a trial basis. However, the new denominations will not be entering into circulation immediately, as the RBI must first complete extensive testing before deciding on a nationwide rollout. The center said that no plan exists as of yet to paper the existing paper currency with plastic notes. 

On Monday, July 27, 2026, Minister of State for Finance Pankaj Chaudhary informed the Lok Sabha that the RBI, after receiving recommendation from its central board, had proposed the introduction of 100 crore pieces of Rs 10 and Rs 20 notes each, amounting to 3000 crore. The government has approved the RBI’s proposal. If the trials are successful, the central bank will begin regular issuance of polymer banknotes in these two denominations.

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What Minister of State for Finance Pankaj Chaudhary Told the Lok Sabha About Polymer Notes

In a written reply to the Lok Sabha, the Minister wrote: “The RBI, with the recommendation of its Central Board, had sent a proposal to the government for the introduction of one billion pieces each of Rs 10 and Rs 20 polymer banknotes for field trials and for the regular issuance of polymer banknotes in these two denominations after the successful completion of field trials. The proposal has been approved by the government.”

Chaudhary also underscored the longer lifespan and durability of polymer notes over paper ones, a fact supported by international studies. He also said that as the introduction of the polymer note presently is in its preliminary phase, its potential impact of digital payments could only be assessed only after regular issuance of these notes.

“RBI had informed that as per international studies, the life span of polymer banknotes is significantly higher than that of paper banknotes. The introduction of polymer banknotes is currently in a preliminary phase and the impact on digital payments, if any, could be ascertained only after regular issuance of these notes. Moreover, banknotes and digital payment systems are complementary payment tools available to the public,” Chaudhary’s written reply in Lok Sabha further said.

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RBI's Earlier Attempt at Polymer Notes in 2009 

This is the RBI’s second attempt to experiment with plastic notes. In September 2009, the central bank had invited bids to procure 100 crore pieces of Rs 10-notes. These notes were to be introduced for a field trial in several cities such as Kochi, Mysuru, Shimla, Jaipur and Bhubaneswar. These cities were not chosen on a random basis, they were chosen based on their different climatic zones to assess the  resilience of the notes in different environment conditions. The trial however was halted in the middle due to unnamed “technical infirmities”.

What Are Polymer Notes and How Do They Differ From Paper Notes? 

Polymer notes are currency bills made from a synthetic plastic material, called biaxially oriented polypropylene (BOPP). In contrast, the traditional paper notes we have today are made from traditional cotton-pulp. Because of their material, polymer notes last 2.5 to 4 times longer than paper money and are also dirt and water resistible. 

Australia was the first country to introduce plastic notes in 1988, as recently around 50 countries in the world use polymer notes as currency.

(Edited by Ritik Singh)

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