Govt. clears Rs 10, Rs 20 polymer note field trials

13 August 2026: Union government has approved the Reserve Bank of India’s plan to put one billion polymer banknotes each of Rs.10 and Rs.20 into field trials, Finance Minister Nirmala Sitharaman told the Rajya Sabha in a written reply on August 11, 2026.

The RBI, acting on a recommendation of its central board, had sought clearance under Section 25 of the Reserve Bank of India Act, 1934. The proposal covers one billion pieces in each denomination for field trials and regular issuance of polymer notes in those denominations after the trials succeed.

“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.

She added that procurement is still at an initial stage. Because of that, the government cannot yet set a firm launch date or estimate the likely expenditure.

What the trials cover

In Indian terms, the approved trial volume is 100 crore notes of Rs.10 and 100 crore notes of Rs.20. The notes are meant to run beside existing paper currency, not replace it. Wider issue will depend on the outcome of the field tests.

RBI target for early FY28

On August 5, 2026, after the Monetary Policy Committee review, RBI Governor Sanjay Malhotra said the central bank was still in the pilot stage and wanted polymer notes in circulation from the beginning of the next financial year, FY28, if plans hold.

“We will test, check as to how they perform in the Indian condition, climate and other infrastructure we have put in place,” Malhotra said at the post-policy media briefing. He said the bank would later decide whether to scale up the notes as they are or with changes.

Malhotra linked the shift mainly to durability. Lower-value notes change hands more often and wear out faster. In other countries, he said, polymer notes can last three to four times longer than paper notes. They can also help expand printing capacity as cash demand grows.

No firm cost or calendar yet

The government has cleared the trial and, subject to success, regular issue of Rs.10 and Rs.20 polymer notes. RBI is aiming for early FY28. But procurement is early, performance checks are still ahead and Sitharaman said neither the exact introduction timeline nor the spending involved can be fixed at this stage.

About 60 countries already use polymer notes fully or in part, including Australia, the United Kingdom and Vietnam. India’s plan so far is limited to trials and possible regular issue in the two low denominations alongside paper notes.