Reserve Bank of India (RBI) Governor Sanjay Malhotra announced on Wednesday that the central bank is aiming to introduce polymer currency notes by FY28. Speaking at the post-Monetary Policy Committee (MPC) media briefing, Malhotra confirmed that pilot field trials are currently in progress to rigorously test the durability and operational performance of polymer notes under varied Indian conditions before initiating a broader market rollout.
The announcement aligns with a recent parliamentary disclosure by the Finance Ministry, which revealed government approval for the RBI's proposal to conduct pilot trials using ₹10 and ₹20 denominations. Under this trial scheme, the central bank plans to issue one billion pieces each of the ₹10 and ₹20 polymer notes to evaluate their resilience against wear and tear in daily circulation.
Polymer banknotes offer a significantly longer lifespan compared to traditional paper substrate notes, making them cost-effective for low-denomination currency that undergoes high transaction velocity. Additionally, polymer material supports advanced security capabilities, such as transparent windows and anti-counterfeiting elements. The government has clarified that polymer currency will circulate alongside existing paper notes rather than replacing paper currency entirely.