The central government has informed Parliament that it has approved the Reserve Bank of India’s (RBI) proposal to begin field trials of ₹10 and ₹20 polymer banknotes.
The move is aimed at testing how durable and practical these plastic-based notes are compared to the current paper currency.
The Finance Ministry said the trial will help the RBI evaluate the usability and lifespan of polymer notes before taking any decision on a wider rollout.
RBI to Test 100 Crore Polymer Notes
According to the Finance Ministry, the RBI has proposed issuing 100 crore (1 billion) polymer banknotes in ₹10 and ₹20 denominations as part of the trial.
If the field test delivers positive results, the RBI may start issuing polymer notes regularly in these two denominations.
However, the central bank has clarified that the project is still in its early stages, and no final decision has been taken yet.
Why Is RBI Introducing Polymer Notes?
Polymer notes are considered more durable than traditional paper currency. Studies from several countries have shown that these notes last much longer in circulation.
They are also:
Water-resistant
Tear-resistant
Less likely to get damaged by sweat, dirt, or daily handling
Since ₹10 and ₹20 notes are used more frequently than higher-value notes, they wear out quickly. Polymer notes could help reduce replacement costs by staying in good condition for a longer time.
Will Paper Notes Be Discontinued?
No. The government has made it clear that there is no plan to stop using paper currency.
During the trial, polymer notes will circulate alongside the existing paper notes. The RBI has not announced any proposal to replace all paper currency with plastic notes.
Will This Affect UPI and Digital Payments?
The Finance Ministry said it is too early to determine whether polymer notes will have any impact on UPI or other digital payment methods.
According to the government, cash and digital payments are expected to continue working together. Both paper or polymer banknotes
and digital payment systems will remain available, giving people the flexibility to choose the payment method that suits them best.
