Polymer banknotes are made from a thin, flexible plastic film instead of the traditional cotton paper. They are already used in countries such as Australia, Canada, the United Kingdom and New Zealand. India is now testing this technology for its Rs 10 and Rs 20 notes.
The government has approved the Reserve Bank of India's proposal to conduct field trials of polymer notes in these two denominations. The approval does not mean that paper notes will be replaced. Polymer notes will be issued alongside the existing paper currency.
RBI Governor Sanjay Malhotra said the rollout will be gradual. First the RBI will issue a tender for the polymer substrate, then print the notes, conduct testing and obtain security clearances. He promised to share more details as the process moves forward.
Polymer notes are made from biaxially oriented polypropylene (BOPP). This plastic film is more resistant to wear, moisture and tearing than paper. It also allows for advanced security features that make counterfeiting harder.
The field trial will involve one billion pieces of each Rs 10 and Rs 20 polymer note, as recommended by the RBI’s Central Board. The trial will test durability, security and public acceptance before any wider rollout.
Minister of State for Finance Pankaj Chaudhary told Lok Sabha that the RBI has sent a formal proposal to the government under Section 25 of the RBI Act. The government has approved the proposal and said the polymer notes will circulate together with paper notes.
The finance ministry said it is too early to judge whether polymer notes will affect digital payments. It added that polymer notes and digital payment systems are complementary tools for the public.
For everyday users, the main benefit is a longer‑lasting note that can survive rough handling and moisture. The higher durability may also reduce the cost of replacing worn notes over time.
Until the trials finish and security checks are complete, the current paper Rs 10 and Rs 20 notes remain in circulation. If the trials prove successful, polymer notes could become a new, durable option for Indian cash.