India’s government has approved the Reserve Bank of India’s proposal to introduce one billion pieces each of Rs 10 and Rs 20 polymer banknotes for field trials, marking a fresh step toward testing plastic currency in the country. Minister of State for Finance Pankaj Chaudhary said in a written reply to the Lok Sabha that the RBI had sought approval under the RBI Act and that regular issuance could follow if the trials are successful.
The government also clarified that polymer notes are not meant to replace paper currency. Chaudhary said the notes are proposed to circulate alongside paper-substrate banknotes, and there is no proposal to withdraw paper currency in favor of polymer notes.
The move is driven by durability concerns. The RBI has argued that lower-denomination notes such as Rs 10 and Rs 20 wear out quickly in heavy everyday use, and polymer notes are expected to last significantly longer while also offering stronger anti-counterfeiting features.
The plan revives an idea first tested more than a decade ago. India had earlier approved field trials of polymer Rs 10 notes in 2012, but the effort did not lead to a wider rollout.
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