RBI Polymer Notes: Are ₹10 and ₹20 Plastic Notes Coming to India?
Imagine accidentally leaving a ₹20 note inside your jeans, putting it through a washing machine and finding it still usable afterward.
That could eventually become possible in India.
The Reserve Bank of India’s currency-printing subsidiary has taken a significant step toward testing polymer banknotes—often described as “plastic notes.” Reports suggest that ₹10 and ₹20 notes could be selected for the initial trial.
But this news has also created confusion. Some social-media posts claim that paper currency will soon be discontinued or that Indians will have to exchange their existing notes.
Neither claim is correct.
India is preparing to test polymer banknote material. RBI has not announced a nationwide launch, paper notes are not being banned, and there is no demonetisation plan connected to the project.
Here is what has actually happened, why RBI is interested in polymer currency and what it could mean for ordinary Indians.
What Is the Latest RBI Polymer Notes Update?
Bharatiya Reserve Bank Note Mudran Private Limited, or BRBNMPL, has invited global Expressions of Interest from manufacturers capable of supplying specialised polymer sheets for Indian banknotes.
BRBNMPL is a wholly owned RBI subsidiary responsible for printing a large portion of India’s currency.
According to details reported from the procurement document, BRBNMPL is seeking an indicative quantity of 68,000 reams of opacified Biaxially Oriented Polypropylene, commonly known as BOPP, substrate.
One ream contains 500 sheets. The requirement has been divided into 34,000 reams for each of two denominations, suggesting that two different notes will be included in the field trial.
Companies have until August 18, 2026, to submit their bids.
The procurement document reportedly states that larger quantities covering additional denominations may be purchased later—but only if the field trials are successful. The main details of the proposed trial were reported by The Indian Express.
This is an important development, but it is still a testing and procurement stage rather than a public launch.
Are ₹10 and ₹20 Polymer Notes Confirmed?
Several reports indicate that ₹10 and ₹20 could be the first denominations selected for the trial.
There is a logical reason for beginning with smaller notes. Low-value currency changes hands more frequently, passes through shops, markets and public transport, and generally suffers more wear than higher-value notes.
Testing polymer with heavily used denominations would help RBI compare its real-world durability against conventional notes.
However, RBI has not officially confirmed that ₹10 and ₹20 will be the two denominations.
The procurement document mentions two denominations but does not publicly identify them. Therefore, ₹10 and ₹20 should currently be described as the likely denominations, not confirmed denominations.
The same caution applies to reports of a 2027 public launch. There is no official RBI rollout date yet.
Is RBI Going to Discontinue Paper Currency?
No.
RBI has not announced any plan to withdraw existing paper currency notes or make them invalid.
In June 2026, social-media posts falsely claimed that all paper notes would be withdrawn and replaced with plastic currency from June 30. A digitally altered video was also circulated to make the rumour appear credible.
PIB Fact Check rejected the claim and clarified that RBI had announced no such replacement or withdrawal.
Your existing ₹10, ₹20, ₹50, ₹100, ₹200 and ₹500 notes remain valid. There is no need to exchange, deposit or return them because of the polymer-note trial.
Even if polymer banknotes are eventually issued, they could circulate alongside existing notes for a considerable period. Countries introducing a new banknote series usually allow old and new notes to coexist before making any larger transition.
A genuine change in the legal status of Indian currency would be announced through the official RBI website, not through an unverified WhatsApp forward or social-media video.
What Are Polymer Banknotes?
Polymer banknotes are made from a thin, flexible plastic material rather than conventional cotton-based banknote paper.
The material under consideration for India is Biaxially Oriented Polypropylene. It is processed into an opaque white substrate that can be printed with currency designs, serial numbers and advanced security features.
The word “plastic” can make these notes sound stiff, but polymer currency remains flexible enough to fold and carry in a normal wallet.
Polymer notes generally feel smoother than paper notes. New notes can occasionally stick together while being counted, although this effect usually decreases after they have circulated for some time.
What Security Features Could Indian Polymer Notes Have?
The proposed Indian polymer substrate is expected to contain several built-in security features.
These reportedly include:
- A transparent window containing a portrait
- A metallic denomination numeral
- A magnetic pseudo-security thread
- A shadow image
- An iridescent pattern that changes appearance when tilted
The transparent window is one of the most recognisable features of polymer currency. Unlike a printed imitation, the window is integrated into the substrate itself, making convincing counterfeits more difficult to produce.
Magnetic and machine-readable elements would also help banks, ATMs and currency-sorting machines authenticate the notes.
Polymer currency is harder to counterfeit, but it is not counterfeit-proof. Security depends on the complete design, printing process and public awareness—not only the material used.
Why Is RBI Considering Plastic Currency?
The biggest potential advantage is durability.
Low-denomination Indian notes are frequently folded, exposed to moisture, handled with dirty hands and used in harsh environments. They may pass through vegetable markets, roadside shops, buses, railway stations and outdoor businesses several times in a single day.
Paper notes absorb moisture and dirt more easily. Polymer has a smooth, non-porous surface, making it more resistant to water, oil and everyday grime.
The Bank of England says its polymer £5 note was expected to last approximately two-and-a-half times longer than the paper version it replaced. Canada and New Zealand have also reported substantially longer circulation lives for polymer banknotes.
If similar results are achieved in India, fewer replacement notes may need to be printed and transported.
That could reduce long-term currency-management costs even if polymer notes are initially more expensive to manufacture.
Could Polymer Notes Reduce Counterfeit Currency?
Polymer provides central banks with security options that are difficult to reproduce using conventional paper and commercial printers.
Transparent windows, metallic elements, colour-shifting effects and embedded features make it easier for the public and machines to examine a note.
India could benefit from these features. According to figures cited by The Indian Express, approximately 2.3 lakh counterfeit notes were detected during 2025–26, compared with around 2.17 lakh in the previous financial year.
However, polymer alone cannot eliminate fake currency. Counterfeiters adapt to new technology, and even countries using polymer currency continue to detect fake notes.
The objective is to make counterfeiting more difficult, expensive and easier to identify—not to claim that it will become impossible.
Are Polymer Notes Better for the Environment?
The answer depends on the full life cycle of the banknote.
Polymer is a plastic-based product, which naturally raises environmental concerns. But a banknote’s environmental impact includes more than its raw material. It also includes manufacturing, replacement frequency, transportation and disposal.
Because polymer notes can last several times longer, a central bank may need to produce and transport fewer replacement notes over time.
Worn polymer notes can also be shredded, melted into pellets and recycled into other plastic products. The Reserve Bank of Australia says its unfit polymer notes are recycled into items such as building components, plumbing fittings and household products.
The environmental advantage depends on India developing a secure and effective recycling system. Longer life alone does not make every plastic product environmentally friendly.
A credible evaluation would need to compare the complete environmental footprint of Indian polymer and conventional banknotes under local conditions.
What Are the Disadvantages of Polymer Notes?
Polymer banknotes offer clear advantages, but they also create practical challenges.
First, they may have a higher initial production cost. Any savings would depend on whether the notes last long enough to offset that expense.
Second, ATMs, vending machines, deposit machines and currency-sorting equipment may require testing or recalibration. A nationwide transition involving thousands of machines would require coordination with banks, businesses and equipment manufacturers.
Third, brand-new polymer notes can feel slippery or stick together. Cashiers and consumers may need time to become familiar with their texture.
Polymer notes are also resistant to ordinary heat, but extreme temperatures can shrink, warp or damage them. They should never be ironed or exposed to an open flame.
They are difficult to tear from an undamaged edge, but once a cut or puncture appears, the tear can spread. Stapling, pinning or excessively creasing them can reduce their lifespan.
These are some of the reasons RBI needs field trials before making a larger decision.
Why Does India Need a Field Trial?
Conditions in India differ significantly across regions.
A banknote used during a humid Kerala monsoon faces different conditions from one circulating in Rajasthan’s dry heat or Himachal Pradesh’s colder climate. India also has a vast cash-handling ecosystem involving banks, ATMs, rural markets, transport operators and small merchants.
A laboratory can test water resistance, printing quality and tensile strength. It cannot fully replicate years of daily circulation across a country as large and diverse as India.
The trial would allow RBI to examine:
- How the notes perform in heat, humidity and dust
- Whether their ink and security features remain intact
- How easily people can count and handle them
- Whether ATMs and sorting machines process them correctly
- How frequently the notes become damaged
- Whether their longer life justifies the production cost
- How worn notes can be securely collected and recycled
A successful laboratory test does not automatically guarantee a national rollout. Performance in circulation will be the more important test.
Has India Considered Polymer Currency Before?
This is not India’s first attempt to explore plastic banknotes.
In 2014, the government informed Parliament about a proposed field trial involving one billion ₹10 polymer notes. The notes were expected to be tested in Kochi, Mysore, Jaipur, Shimla and Bhubaneswar—cities selected for their different climatic conditions.
The project did not progress to a nationwide public rollout because of technological and operational issues.
In June 2026, RBI Governor Sanjay Malhotra confirmed that polymer currency was again under consideration. He said the central bank was examining its advantages, disadvantages and overall feasibility, while emphasising that no final decision had been made.
The BRBNMPL procurement process now indicates that the examination has moved toward obtaining physical material for field testing.
That makes the current development more concrete than earlier speculation, but it still does not amount to final approval.
Which Countries Already Use Polymer Banknotes?
Australia introduced the world’s first modern polymer banknote in 1988 and completed its transition to an entirely polymer series by 1996.
The United Kingdom, Canada, New Zealand, Singapore and several other countries now use polymer notes in some or all denominations.
Their experiences demonstrate that polymer currency can function successfully in both cold and tropical climates. They also show that introducing it requires public education, machine upgrades and careful planning.
India’s eventual decision will depend on local trial results rather than simply copying another country’s system.
When Could RBI Polymer Notes Enter Circulation?
There is no confirmed launch date.
The immediate process is likely to include:
- Completion of the Expression of Interest process
- Evaluation of suppliers and sample sheets
- Laboratory testing of the polymer substrate
- Selection of material and security features
- Printing a controlled quantity of trial notes
- Field testing under different conditions
- Analysis of durability, cost and machine compatibility
- A final RBI decision on public circulation
Some media reports have suggested that a limited introduction could begin in 2027. That should be treated as an estimate, not an official commitment.
If RBI approves a public pilot, it will announce the denominations, design, issue date and legal-tender details through formal channels.
What Should You Do With Your Existing Notes?
Nothing needs to be done.
Continue using your existing currency normally. Paper notes have not been banned, and no exchange deadline has been announced.
Be cautious if anyone asks you to exchange your cash early, offers “new plastic notes” for sale or claims your existing notes will soon become worthless.
Genuine Indian banknotes are issued only through the official currency system. Images claiming to show final Indian polymer-note designs should be treated as illustrations unless confirmed by RBI.
Frequently Asked Questions
Is RBI launching plastic notes in India?
RBI’s printing subsidiary is procuring polymer substrate for field trials. A nationwide public launch has not been approved or announced.
Will ₹10 and ₹20 be the first polymer notes?
Reports suggest ₹10 and ₹20 are likely to be selected, but RBI has not officially disclosed the two trial denominations.
Are existing paper notes being discontinued?
No. Existing Indian currency remains valid, and there is no demonetisation or paper-note withdrawal announcement.
Are polymer notes completely waterproof?
They are highly resistant to water and moisture, but “water-resistant” is more accurate than indestructible. Security features and printing can still be damaged through improper handling.
Can polymer notes be folded?
Yes. They can be kept in wallets normally, although repeated hard creases should be avoided.
Can plastic currency melt?
Normal Indian weather is unlikely to melt polymer currency. However, direct flames, ironing and extreme heat can warp or shrink the material.
Are polymer notes impossible to counterfeit?
No currency is completely counterfeit-proof. Polymer enables stronger security features that can make counterfeiting more difficult.
Will people have to exchange all their old notes?
There is no such requirement. If any future exchange or withdrawal becomes necessary, RBI will issue a formal public notification.
The Bottom Line
India has moved closer to testing polymer banknotes, but the country has not decided to replace paper currency.
BRBNMPL’s global procurement process is designed to obtain specialised material for a controlled field trial. ₹10 and ₹20 notes may be included, but their selection remains unconfirmed.
The trial will determine whether polymer notes can survive India’s climate, heavy cash usage and vast payment infrastructure while reducing long-term printing costs and counterfeit risks.
For now, your existing money remains valid.
This is not another demonetisation. It is a currency-technology experiment—and its outcome will decide whether India’s future wallets contain paper notes, polymer notes or both.
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