New Delhi, July 27, 2026 (Yes Punjab News)
The Centre has approved the Reserve Bank of India’s (RBI) proposal to conduct field trials of polymer currency notes in denominations of ₹10 and ₹20, the Finance Ministry informed the Lok Sabha on Monday.
Minister of State for Finance Pankaj Chaudhary provided the information in a written reply to a question in the House, stating that the RBI would undertake trials to assess the performance of polymer notes under Indian conditions.
The government clarified that the move does not indicate any plan to discontinue paper currency. Polymer notes, if introduced, will circulate alongside existing paper-based banknotes, and there is no proposal to replace paper currency completely with polymer notes.
As part of the trial exercise, the RBI plans to issue one billion pieces each of ₹10 and ₹20 polymer currency notes. A decision on wider circulation will be taken only after evaluating the outcome of the field trials.
The RBI has highlighted the durability of polymer banknotes compared to traditional paper currency. According to the central bank, polymer notes have a longer lifespan, which can help reduce the frequency of printing, replacement and disposal of worn-out low-denomination notes.
The polymer substrate also allows the use of advanced security features, including transparent windows and specialised security elements aimed at preventing counterfeiting.
The RBI informed the government that it is too early to determine whether polymer notes would have any impact on digital payment systems. Such an assessment can only be made after the notes are introduced into regular circulation.
The central bank maintained that cash transactions and digital payments are complementary systems and are likely to continue operating alongside each other.
“There is no proposal under consideration to replace paper substrate-based banknotes with polymer substrate-based banknotes,” Chaudhary said in his written reply in the Lok Sabha.
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