India Revives Plan for Polymer Banknotes Amid Cost-Saving Push

The Indian government has approved the Reserve Bank of India's (RBI) proposal to introduce RBI polymer notes in the ₹10 and ₹20 denominations for field trials. The move is a revival of a plan first announced more than a decade ago.

According to Minister of State for Finance Pankaj Chaudhary, the RBI has proposed introducing one billion pieces each of ₹10 and ₹20 RBI polymer notes for field trials. Regular issuance would follow if the trials are successful.

The main advantage of RBI polymer notes is their longer lifespan, which can be up to six times that of paper banknotes. This means fewer replacements, lower printing costs, and reduced waste. The government has clarified that RBI polymer notes will circulate alongside existing paper-substrate Indian currency and not replace them entirely.

Over 60 countries use polymer banknotes made from durable plastic films, which last much longer than conventional paper banknotes. Australia became the first country to issue polymer banknotes in 1988, followed by developed economies such as the UK, Canada, and New Zealand. Closer to India, Thailand, Vietnam, Malaysia, and Singapore also use plastic currency.