New Delhi, August 5: The Reserve Bank of India (RBI) is rapidly working towards introducing polymer (plastic) banknotes in the country. RBI Governor Sanjay Malhotra announced that field trials for these polymer notes are currently underway, and decisions regarding large-scale issuance will be based on the results of these trials. The central bank aims to launch these notes in the market by the financial year 2027-28.
During a press conference following the monetary policy announcement, the RBI Governor stated that the pilot project for polymer banknotes is testing their performance under various conditions. Before large-scale issuance, it will be ensured that these notes are durable and effective in accordance with Indian weather, usage patterns, and operational requirements.
He mentioned that a comprehensive evaluation of the data and experiences gathered during the field trials will be conducted. A final decision on the widespread circulation of polymer notes will be made only after this evaluation.
Previously, the central government informed Parliament that it has approved the RBI’s proposal to conduct field trials for polymer notes of ₹10 and ₹20 denominations. Under this pilot project, 100 crore notes of each denomination are planned to be issued to assess their strength, durability, and utility in Indian conditions.
The RBI believes that polymer notes last longer compared to traditional paper notes. This can be particularly beneficial for lower denomination notes, which are used frequently and tend to wear out quickly. It is expected to reduce the costs associated with frequent printing and replacement of notes.
Advanced security features will also be incorporated into polymer notes, including transparent windows and other modern security elements, which will help in identifying counterfeit notes and effectively curb forgery.
The government has clarified that there are currently no plans to completely phase out paper currency. Even after the issuance of polymer notes, they will coexist with existing paper notes.
According to the RBI, the performance of polymer notes will be assessed in various climatic and usage conditions across the country. A final decision on their widespread use will be made only after the completion of field trials and operational reviews.
Bhupendra Singh Chundawat is a seasoned technology journalist with over 22 years of experience in the media industry. He specializes in covering the global technology landscape, with a deep focus on manufacturing trends and the geopolitical impact on tech companies. Currently serving as the Editor at Udaipur Kiran, his insights are shaped by decades of hands-on reporting and editorial leadership in the fast-evolving world of technology.