Archive · 12 Aug 2026
Government approves polymer banknote trials for Rs 10, Rs 20
The Reserve Bank of India, which manages money in India, wants to try making new banknotes out of a special plastic called polymer.
The Indian government has approved this idea for a test.
The test will use 10-rupee and 20-rupee notes.
One billion notes of each type will be made for the trial.
The polymer notes will first be tested in the real world, like in shops and banks.
If the tests go well, the RBI plans to issue them regularly.
Until then, the new notes will be used next to the regular paper money.
Polymer notes last longer than paper notes and are harder to copy.
The RBI has started buying the materials, but it is still early, so nobody knows exactly when the notes will show up.
The Government of India approved the Reserve Bank of India's proposal to introduce polymer banknotes in Rs 10 and Rs 20 denominations on a trial basis.
Finance Minister Nirmala Sitharaman told Parliament that the RBI's central board recommended one billion polymer notes in each denomination.
The proposal was submitted to the government under Section 25 of the Reserve Bank of India Act, 1934, and was announced in a reply to the Rajya Sabha.
The polymer notes will first be field-tested and will circulate alongside paper banknotes; RBI Governor Sanjay Malhotra indicated they could enter circulation at the start of the next financial year.
Procurement is at an early stage so the introduction date and cost are not yet specified; polymer notes last two to four times longer and resist water, dirt and counterfeiting.
- Who
- Finance Minister Nirmala Sitharaman, RBI Governor Sanjay Malhotra, the Reserve Bank of India (RBI), and the Government of India (Centre)
- What
- Approval of field trials for Rs 10 and Rs 20 polymer banknotes, with one billion notes of each denomination planned
- When
- Announced on Tuesday, August 11, in a written reply to the Rajya Sabha responding to member Neeraj Shekhar; possible circulation from the start of the next financial year
- Where
- New Delhi, India
- Why
- To test how polymer notes perform under India's climate conditions and currency-handling infrastructure before deciding on regular issuance
- Topic
- Approved field trials of Rs 10 and Rs 20 polymer banknotes
- Denominations
- Rs 10 and Rs 20
- Trial volume
- One billion notes per denomination
- Proposing body
- Reserve Bank of India (RBI)
- Approving body
- Government of India (Centre)
- Legal basis
- Section 25 of the Reserve Bank of India Act, 1934
- Expected circulation
- Possible from the start of the next financial year, subject to trial results
- Status
- Procurement at early stage; introduction date and cost not yet specified
