The Reserve Bank of India (RBI) has taken a major step towards introducing plastic or polymer currency notes in the country. Union Minister of State for Finance Pankaj Chaudhary informed the Lok Sabha through a written reply that RBI will conduct a pilot test by issuing ₹10 and ₹20 denomination polymer notes.

As part of the first phase of the trial, around 100 crore polymer notes worth approximately ₹3,000 crore will be introduced to assess their durability and performance under different conditions.

Bhubaneswar Among Five Cities for Polymer Note Trial

To test the strength and longevity of polymer notes across diverse climatic conditions, RBI has selected five cities for the pilot project. These include:

• Bhubaneswar
• Kochi
• Mysuru
• Jaipur
• Shimla

The selected locations represent different weather conditions, including extreme heat, high humidity, dry climates and hilly regions. The trial will help evaluate how polymer notes perform compared to traditional paper currency.

Polymer notes are considered more durable as they are water-resistant, difficult to tear and less likely to accumulate dirt. Their longer lifespan could potentially reduce the cost of currency replacement and printing over time.

Existing Paper Notes Will Continue

The government has clarified that there is no plan to completely replace existing paper currency with polymer notes at present. The ₹3,000 crore project is only a pilot initiative, and any future expansion will depend on the results of the trial and public feedback.

Global Tender Issued for Polymer Sheets

The latest announcement provides the first official confirmation regarding RBI’s field testing of polymer notes. On July 17, RBI’s wholly owned subsidiary Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL) issued a global tender for the procurement of 34 million polymer sheets for printing ₹10 and ₹20 denomination notes.

Economic experts believe the move could mark a significant transformation in India’s currency system by introducing more durable and advanced banknotes. The outcome of the pilot project will determine the future roadmap for polymer currency in the country.