India Revives Plan to Introduce Polymer Banknotes in ₹10 and ₹20 Denominations

The Indian government has approved the Reserve Bank of India's proposal to introduce RBI polymer notes in the ₹10 and ₹20 denominations for field trials. This move is a revival of a plan announced over a decade ago, which was initially intended to introduce one billion pieces of ₹10 RBI polymer notes on a trial basis in five cities.

The Centre has clarified that there is no proposal to replace existing paper-based Indian currency with RBI plastic notes. The RBI subsidiary, Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL), floated a tender indicating the central bank's readiness to move ahead with a fresh trial of RBI polymer notes.

The Minister of State for Finance, Pankaj Chaudhary, said that international studies show RBI polymer notes have a much longer lifespan than conventional paper notes. The proposal is still at a preliminary stage, and any impact on digital payments can only be assessed after regular issuance begins.