The Reserve Bank of India (RBI) is reportedly reviving its long-pending plan to introduce polymer, or plastic, currency notes as part of efforts to improve the durability of banknotes and reduce long-term printing costs.
According to recent reports, the central bank is considering launching a pilot project involving ₹10 and ₹20 denomination notes, which are among the most frequently used and quickly worn-out currencies in circulation.
The proposal was reportedly discussed during recent RBI board meetings held in Patna and Mumbai. The move comes at a time when the demand for physical cash continues to remain strong despite the rapid expansion of digital payment systems across the country. Currency in circulation has witnessed significant growth, prompting the RBI to explore more durable alternatives to conventional paper-based banknotes.
Polymer banknotes are manufactured using a thin, flexible plastic substrate instead of the traditional cotton-based paper used in Indian currency. These notes are known for their longer lifespan, higher resistance to moisture, dirt and tearing, and enhanced security features that make counterfeiting more difficult. Several countries, including Australia, Canada, Singapore, the United Kingdom and New Zealand, have already adopted polymer currency for regular circulation.
The RBI’s renewed interest in polymer notes is also linked to rising currency printing expenses. Reports indicate that banknote printing costs increased significantly during FY25, while billions of damaged and soiled notes had to be withdrawn from circulation. Since lower denomination notes such as ₹10 and ₹20 exchange hands frequently in daily transactions, they tend to deteriorate faster than higher-value denominations. Polymer notes could help reduce replacement frequency and improve overall efficiency in currency management.
India had previously explored polymer currency in 2012 through a limited field trial of ₹10 notes across selected cities. However, the initiative was eventually shelved due to technological and operational challenges. Recent advancements in currency-handling technology and ATM compatibility have reportedly addressed many of those concerns, paving the way for a possible revival of the project.
While no official launch date has been announced, industry observers believe a phased rollout could begin with lower denomination notes before any wider implementation is considered. The proposed move reflects the RBI’s ongoing efforts to modernise currency management while ensuring greater durability, security and cost efficiency in the country’s cash-based transactions.