India is set to take a major step toward modernizing its currency system as the Reserve Bank of India (RBI) prepares to introduce ₹10 and ₹20 polymer (plastic) banknotes. The Central Government has approved a pilot project under which 200 crore polymer notes—100 crore each of ₹10 and ₹20 denominations—will be printed for testing.
The move aims to improve the durability of currency, reduce counterfeiting, and lower long-term printing costs. Existing paper notes, however, will remain in circulation alongside the new polymer notes.
Government Approves RBI's Polymer Note Trial
Minister of State for Finance Pankaj Chaudhary informed the Lok Sabha that the government has cleared the RBI's proposal to conduct a pilot project for polymer currency.
While the official rollout date has not yet been announced, the RBI is expected to begin the project after completing procurement and printing processes. If the trial proves successful, polymer notes may be introduced on a larger scale.
What Are Polymer Notes?
Polymer banknotes are printed on a special plastic substrate instead of traditional paper.
Key Benefits of Polymer Currency
Longer lifespan than paper notes
Water-resistant and less prone to tearing
Better resistance to dust and dirt
Advanced anti-counterfeiting security features
Lower long-term printing and replacement costs
The RBI spent ₹6,372.8 crore on printing currency in FY25. Since polymer notes last significantly longer, they could help reduce future printing expenses.
Will Existing ₹10 and ₹20 Paper Notes Become Invalid?
No.
The RBI has clarified that the introduction of polymer notes will not replace existing paper currency immediately.
Paper and polymer notes will circulate together.
The transition will happen in phases.
Existing paper notes will continue to remain legal tender.
RBI Issues Global Tender
To begin production, the RBI's banknote printing unit has floated a global Expression of Interest (EOI) for the supply of polymer substrate sheets with advanced security features.
The deadline for companies to submit bids is August 18.
After procurement and testing, the RBI will begin printing the new notes for the pilot phase.
Why Is India Introducing Plastic Currency?
The RBI aims to:
Increase the lifespan of frequently used low-denomination notes.
Reduce the circulation of counterfeit currency.
Improve the quality and cleanliness of banknotes.
Lower recurring printing and replacement costs.
More Than 60 Countries Already Use Polymer Notes
Polymer currency has already been adopted in several countries, including:
Australia
Canada
United Kingdom
New Zealand
These countries have reported improved durability and stronger protection against counterfeiting.
Current RBI Currency Notes in Circulation
The RBI currently issues banknotes in the following denominations:
₹10
₹20
₹50
₹100
₹200
₹500
Older ₹1, ₹2, and ₹5 paper notes are no longer printed, though previously issued notes remain legal tender where applicable.
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