The Reserve Bank of India is taking a major step toward replacing traditional paper currency with durable polymer banknotes. Its subsidiary has floated a global tender to trial plastic notes for the ten and twenty-rupee denominations.
10 months
Average paper note life
⏳ Time Machine
How today’s news fits into the bigger picture
1988
Australia launches polymer
Australia became the first nation to issue polymer banknotes, completely eliminating paper cash by 1996 to stop counterfeiting.
November 2016
Demonetization shock
India invalidated 86% of its currency in circulation, leading to a temporary cash shortage and sparking the digital payments revolution.
September 2016
UK adopts plastic £5
The Bank of England introduced its first polymer £5 note, citing superior durability and cleanliness compared to cotton paper.
Today
RBI’s printing subsidiary floats a global tender to source polymer material for trial banknotes.
What happens next?
A limited 12-month pilot project testing plastic ₹10 and ₹20 notes will launch in select cities by mid-2027.
India's cash landscape is on the verge of its most significant physical transformation since demonetization. The Reserve Bank of India's subsidiary, Bharatiya Reserve Bank Note Mudran Private Limited, has floated a global tender to procure polymer substrate for trialing plastic currency. The pilot project will focus on the **₹10** and **₹20** denominations, which are the most heavily circulated and quickly damaged notes in the economy. While paper notes last barely a year under harsh tropical conditions, plastic polymer notes have an average lifespan that is **four times longer**, significantly reducing recurring printing costs. Several global economies, including the UK and Australia, already use polymer cash. However, scaling this to India's massive **₹34 lakh crore** cash-in-circulation economy presents unique engineering and behavioral challenges, making this trial a crucial test of India's currency infrastructure.
💭 If you're wondering…
No. Modern polymer banknotes are designed to withstand temperatures exceeding 120 degrees Celsius, far above any natural climate condition.
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