Government Approves Polymer Banknotes for Field Trials

On 27th July 2026, the Central Government informed the Parliament that it had approved the Reserve Bank of India's proposal to issue 1 billion pieces each of ₹10 and ₹20 polymer banknotes for field trials.

Key Points

Field Trials: The RBI will issue 1 billion polymer banknotes each in the ₹10 and ₹20 denominations to evaluate their performance under different circulation conditions.
Regular Issuance: Following successful field trials, the RBI will begin the regular issuance of polymer banknotes in these two denominations.
Coexistence with Paper Notes: Polymer banknotes will circulate alongside existing paper banknotes, and there is no proposal to replace paper currency completely.
Objective: Polymer banknotes are being introduced to increase the durability and lifespan of currency notes, reduce replacement costs and improve resistance to wear and tear.
Background: India first explored the introduction of polymer banknotes in 2012, but the initiative was deferred due to technological challenges.