RBI Revives Plans for Plastic Banknotes Amid Ongoing Cash Transactions

The Reserve Bank of India (RBI) is reviving its plans to introduce polymer currency notes, starting with ₹10 and ₹20 denominations. This move aims to provide a more durable and safer alternative to paper currencies. Polymer banknotes are made from a synthetic polymer or a specially engineered polymer substrate, most commonly biaxially oriented polypropylene (BOPP).

Polymer notes last twice longer than traditional paper notes, reducing the environmental impact and cost of production and replacement. In India, paper currency is made from a material that is a blend of 75% cotton and 25% linen. Unlike such paper currencies, which absorb moisture and dirt through exchange of hands, polymer banknotes are resistant to water, sweat, and dirt.

The RBI spends a significant amount on collecting damaged notes and destroying or recycling them, besides printing fresh notes. In the past decade, its annual printing expenditures have ranged between ₹4,000 crore and ₹5,500 crore. In 2025-26, its security printing expenses were ₹4,875 crore.

The RBI is planning to roll out polymer banknotes through Bharatiya Reserve Bank Note Mudran (BRBNMPL), which has floated a global Expression of Interest (EoI) for the supply of polymer substrate sheets embedded with security features. The EoI suggests an initial requirement of 68,000 reams of BOPP-based polymer substrate-34,000 reams each for two denominations, ₹10 and ₹20.