Mumbai, August 5, 2026 (Yes Punjab News)
Reserve Bank of India (RBI) Governor Sanjay Malhotra on Wednesday said the central bank is aiming to introduce polymer currency notes by financial year 2027-28, with field trials currently underway to assess their durability and suitability before a wider rollout.
Speaking to IANS during the post-Monetary Policy Committee (MPC) outcome media briefing, Malhotra said the pilot project for polymer banknotes is still in progress and the currency will be introduced only after detailed evaluation.
“There is still a pilot going on for polymer notes,” the RBI Governor said.
“We will test the currency before bringing it to the market,” he told IANS.
Malhotra said the RBI would analyse the outcome of the field trials before taking a final call on the broader circulation of polymer notes. He added that the central bank is targeting their rollout by FY28.
The development comes after the Finance Ministry informed Parliament that the government had approved the RBI’s proposal to conduct field trials of polymer currency notes in denominations of Rs 10 and Rs 20.
As part of the pilot programme, the RBI plans to issue one billion pieces each of Rs 10 and Rs 20 polymer notes to evaluate their performance under Indian conditions, including durability, handling and circulation patterns.
The RBI has highlighted that polymer banknotes generally have a longer lifespan compared to traditional paper currency, which could help reduce replacement costs, especially for lower denomination notes that undergo frequent use and damage.
Polymer notes also offer scope for advanced security features, including transparent sections and enhanced anti-counterfeiting measures.
The government has clarified that there is currently no plan to completely replace paper currency with polymer notes. If introduced, polymer banknotes will coexist with existing paper currency.
The RBI has maintained that any decision on expanding the use of polymer notes will depend on the results of field trials and a comprehensive operational assessment across different regions and climatic conditions in the country.
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