India approves RBI trial of 2bn polymer Rs10 and Rs20 notes

The Indian government has approved a proposal from the Reserve Bank of India to conduct large-scale field trials of polymer banknotes, marking a significant step toward potentially introducing more durable currency. The trials will involve two billion notes, one billion each in the 10 and 20 rupee denominations, to test their performance under the country's diverse climatic and handling conditions.

Minister of State for Finance Pankaj Chaudhary confirmed the approval in written replies to the Lok Sabha on Monday, July 27, 2026. He stated the proposal was approved under the provisions of the Reserve Bank of India Act, 1934. The central bank has informed the government that international studies indicate polymer banknotes have a significantly longer lifespan than conventional cotton-based paper currency.

Officials emphasized that the initiative is preliminary and that paper currency is not being phased out. Chaudhary clarified that polymer notes are proposed to circulate alongside existing paper notes, with no current plan to replace the traditional currency system entirely. A decision on regular circulation will be made only after the successful completion of the field trials.