India Approves Field Trials for 2 Billion Polymer Banknotes

The Government of India has approved a proposal from the Reserve Bank of India to conduct field trials of polymer banknotes in ₹10 and ₹20 denominations. The pilot project involves issuing one billion notes for each denomination, totaling 2 billion pieces with a combined value of ₹3,000 crore, to evaluate durability and public acceptance across diverse climatic conditions.

Minister of State for Finance Pankaj Chaudhary informed the Lok Sabha that polymer notes offer a longer lifespan and greater resistance to wear and tear than traditional cotton-based paper currency. He stated that these notes will be issued for regular use following the completion of the trials. The government clarified that polymer currency will coexist with paper banknotes and there is currently no proposal to replace paper substrate entirely. Officials also asserted that the initiative is complementary to digital payment systems and will not disrupt their growth.

To implement the project, the Reserve Bank's printing arm, Bharatiya Reserve Bank Note Mudran Pvt Ltd, invited global expressions of interest for polymer substrate sheets. The sourcing process includes strict national security conditions to ensure the material is not linked to supplies used in China or Pakistan. This initiative revives a plan first announced in 2012.