New Delhi, August 5: The Reserve Bank of India (RBI) is making significant strides towards introducing polymer (plastic) banknotes in the country. RBI Governor Sanjay Malhotra announced that field trials for these polymer notes are currently in progress. The decision for large-scale issuance will depend on the results of these trials. The central bank aims to launch these notes by the fiscal year 2027-28.
During a press conference following the monetary policy announcement, the RBI Governor stated that the pilot project is testing the performance of polymer banknotes under various conditions. Before a widespread release, it will be ensured that these notes are durable and effective in accordance with Indian weather, usage patterns, and operational requirements.
He explained that a comprehensive evaluation of the data and experiences gathered during the field trials will be conducted. A final decision regarding the broad circulation of polymer notes will be made only after this assessment.
Previously, the central government informed Parliament that it had approved the RBI’s proposal to conduct field trials for polymer notes in denominations of ₹10 and ₹20. This pilot project plans to issue 100 crore notes for each denomination to assess their strength, durability, and utility in Indian conditions.
The RBI believes that polymer notes will last longer than traditional paper notes. This is particularly beneficial for lower denominations, which are frequently used and tend to wear out quickly. This shift could also reduce the costs associated with the frequent printing and replacement of notes.
Advanced security features will be incorporated into polymer notes, including transparent windows and other modern security elements. These enhancements will facilitate the identification of counterfeit notes and help curb forgery effectively.
The government has clarified that there are no plans to completely phase out paper currency. Even after the introduction of polymer notes, they will circulate alongside existing paper notes.
According to the RBI, the performance of polymer notes will be evaluated in various climatic and usage conditions across the country. A final decision on their widespread use will be made only after completing the field trials and operational reviews.
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