India may soon introduce ₹10 and ₹20 polymer (plastic) currency notes, with the Central Government reportedly approving a proposal submitted by the Reserve Bank of India (RBI). According to information shared in Parliament, the new notes will initially be released as part of a field trial. Based on the outcome of the pilot project, a decision will be taken on introducing them for regular circulation.
As part of the trial, around 100 crore ₹10 notes and 100 crore ₹20 notes are expected to be printed and circulated on an experimental basis. The government has clarified that the existing paper currency notes will continue to remain valid and there is currently no proposal to completely replace them with polymer notes.
Experts say polymer notes are more durable than paper currency, are harder to counterfeit, and could reduce printing costs over the long term. Australia became the first country to introduce polymer banknotes in 1988, and more than 50 countries now use them. Reports also suggest that the RBI has invited global tenders related to the project, paving the way for the possible introduction of plastic currency notes in India.
