New Delhi, August 11, 2026 (Yes Punjab News)
The government has approved a proposal for field trials of two billion polymer banknotes, with one billion notes each planned in the Rs 10 and Rs 20 denominations, Parliament was informed on Tuesday.
In a written reply to the Rajya Sabha, Finance Minister Nirmala Sitharaman said the Reserve Bank of India (RBI), based on a recommendation of its central board, had submitted the proposal to the government under Section 25 of the RBI Act, 1934.
The proposal also provides for regular issuance of polymer banknotes in the two denominations if the field trials prove successful.
“The proposal has been approved by the government. As per the RBI, these polymer banknotes are proposed to be issued along with paper substrate-based banknotes,” Sitharaman said.
The Finance Minister said the RBI had informed the government that the procurement process for the polymer notes is currently at an initial stage. As a result, the timeline for their introduction and the expenditure involved have not yet been determined.
The proposed field trials come as the RBI explores polymer-based currency alongside existing paper substrate-based banknotes.
Earlier this month, RBI Governor Sanjay Malhotra said the central bank was targeting the launch of polymer currency notes at the beginning of the next financial year.
Responding to an IANS question at a post-Monetary Policy Committee (MPC) outcome media briefing, Malhotra said the pilot programme for polymer banknotes was still underway.
“There is still a pilot going on for polymer notes,” the RBI Governor said, adding, “We will test the currency before bringing it to the market.”
Malhotra also indicated that the RBI would assess the results of the field trials before taking a final decision on wider circulation of polymer notes.
The RBI Governor has said the central bank is targeting circulation of polymer notes by FY28.
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