RBI Targets Polymer Note Circulation by Next Financial Year

Reserve Bank of India Governor Sanjay Malhotra announced that the central bank targets putting polymer currency notes into circulation by the beginning of the next financial year, contingent upon successful pilot trials. The initiative focuses on Rs 10 and Rs 20 denominations, which experience high circulation velocity and shorter lifespans than higher denominations.

With approval from the Ministry of Finance, the RBI is issuing one billion notes of each denomination for field trials. These tests evaluate how the plastic substrate performs under Indian climatic conditions and within existing infrastructure. The RBI has already floated a tender for the procurement of the polymer substrate.

Malhotra stated that polymer notes are three to four times more durable than paper, which will reduce replacement costs and expand printing capacity to meet growing economic needs. The new banknotes will feature improved security, such as transparent windows, and will circulate alongside existing paper currency rather than replacing it entirely. While some reports mention a rollout for the 2027-28 financial year, the Governor emphasized the target remains the beginning of the next financial year if plans proceed as expected.