RBI Aims to Launch Polymer Currency Notes in Early FY28: Governor Sanjay Malhotra

The Reserve Bank of India (RBI) is targeting the introduction of polymer currency notes in early FY2027-28, subject to the successful completion of field trials currently underway, as per PTI news reports. The pilot programme, approved by the government, will cover ₹10 and ₹20 denomination notes.  

Around one billion pieces of each denomination will be issued to assess their durability, performance and suitability under Indian conditions before any decision on wider circulation is taken. 

Lower Denominations Identified for Initial Rollout 

The proposed rollout is focused on lower-value currency notes, which experience higher circulation and faster wear than larger denominations.  

Polymer banknotes have a longer life than conventional paper notes and have remained in use for over three decades in several countries. Their longer lifespan is to reduce the frequency of note replacement, particularly for denominations that change hands frequently.  

The RBI is also assessing the operational performance of polymer notes across different climatic conditions before finalising the next stage of the programme. 

Wider Replacement Not Under Consideration 

The government has clarified that the introduction of polymer notes will not lead to the withdrawal of existing paper currency. If the pilot programme is successful, polymer and paper banknotes will circulate together.  

The central bank has maintained that any expansion beyond the trial phase will depend on the outcome of field testing and operational evaluation. 

Polymer notes can accommodate security features such as transparent windows and enhanced anti-counterfeiting elements, in addition to offering greater resistance to physical wear. 

Read More: RBI Plans to Resume Urban Cooperative Bank Licenses After 22 Years, Review Rural Bank Guidelines! 

Conclusion 

Field trials of ₹10 and ₹20 polymer notes will determine the next phase of the rollout. The RBI has indicated that any wider introduction will depend on operational assessments and trial outcomes. 

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