India approves field trials for 2 billion polymer ₹10 and ₹20 notes

The Indian government has approved a proposal from the Reserve Bank of India (RBI) to conduct field trials for polymer banknotes in the ₹10 and ₹20 denominations. Finance Minister Nirmala Sitharaman confirmed the decision in the Rajya Sabha, noting that the plan involves the introduction of one billion ₹10 notes and one billion ₹20 notes for testing purposes.

These polymer notes are intended to circulate alongside existing paper currency rather than replacing it. The trials aim to assess the durability and utility of the plastic-based substrate, which is more resistant to water, dirt, and tearing than traditional paper. If the field trials are successful, the government may consider regular issuance of these denominations.

RBI Governor Sanjay Malhotra indicated that the central bank is targeting the circulation of polymer currency by FY28. While the procurement process is in its initial stages, a definitive timeline and the total expenditure for the rollout have not yet been determined. Banks may face additional costs, such as replacing ATM cash cassettes, to accommodate the new material.