India Approves Field Trials for 1 Billion Polymer Rs 10, Rs 20 Notes

The Indian government has approved a proposal to conduct field trials of one billion polymer banknotes each in the denominations of 10 and 20 rupees, a significant step toward testing an alternative currency format for the country's lower-value notes. The decision was confirmed by Finance Minister Nirmala Sitharaman in a written reply to the Rajya Sabha on Tuesday, August 11, 2026.

The proposal was submitted by the Reserve Bank of India (RBI) under Section 25 of the Reserve Bank of India Act, 1934, following a recommendation from its central board. The trials are intended to assess the performance of polymer notes in real-world circulation before any potential broader adoption. Sitharaman clarified that the approval does not mean an immediate phasing out of paper currency. Instead, the polymer notes will be issued alongside existing paper-based banknotes in these denominations.

Polymer banknotes are made from a thin, flexible plastic film rather than the traditional cotton-based paper. They are widely considered to be more durable, resistant to dirt and moisture, and harder to counterfeit. Several countries, including Australia, the United Kingdom, and Singapore, have already...