India has sanctioned field trials for polymer banknotes in ₹10 and ₹20 denominations, aiming to test their durability and resistance, with government approval paving the way for potential wider circulation based on trial success.
India has cleared the way for field trials of polymer banknotes in ₹10 and ₹20 denominations, with the Reserve Bank of India’s proposal now approved by the government. According to reports in Business Standard, The Economic Times and News on Air, the plan covers 1 billion notes each in the two denominations, with the central bank acting on the recommendation of its Central Board.
Officials have stressed that the move is not a replacement programme for paper currency. The polymer notes are expected to circulate alongside existing paper notes, at least in the trial phase, and any wider rollout will depend on how the new notes perform in use, The Times of India and Tribune India reported. The government said the decision follows the RBI’s request under the Reserve Bank of India Act, 1934.
The attraction of polymer notes is their durability. The RBI has told the government, according to the reports, that international studies suggest they last significantly longer than paper banknotes. That could make them more resistant to wear, water and moisture, although the bank has yet to set out any broader timeline for regular circulation.
The discussion in Parliament also touched on inflation, with the Finance Ministry saying retail price growth has eased over recent years. The figures cited in the written reply showed average retail inflation at 5.4 per cent in 2023-24, 4.6 per cent in 2024-25 and 2.1 per cent in 2025-26, before rising to 3.9 per cent in the first quarter of 2026-27. The government also highlighted recent goods and services tax changes, including a simplified two-tier structure.
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