India approves RBI's polymer notes trial - ₹10 & ₹20

1. Govt Approval & Numbers

Approval given by: Ministry of Finance in Lok Sabha on July 27, 2026

Quantity for trial: 1 billion each of ₹10 and ₹20 polymer banknotes

Next step: If field trials succeed, RBI will do regular issuance  

2. Why Polymer Instead of Paper?

RBI told Govt:

Durability: Polymer notes have "significantly higher" lifespan than paper notes as per international studies

Cost saving: FY25 printing cost was ₹6,372.8 crore vs ₹5,101.4 crore in FY24. Polymer lasts 4-5x longer so re-printing reduces

Hygiene: Waterproof, tear-resistant, cleaner to handle

Demand: Cash in circulation at record ₹42.86 trillion. ₹10/₹20 notes get damaged fastest 

3. Will Paper Notes Go Away?

No.

Govt and RBI both clarified: "Polymer banknotes will be issued along with paper-substrate banknotes"

"There is no proposal to replace paper currency with polymer-substrate banknotes" 

4. Security Features Expected

As per BRBNMPL tender for "opacified polymer substrate sheets with embedded security features":

Clear transparent window

Metallic numeral

Magnetic thread

Shadow image

Iridescent pattern

These make counterfeiting harder. 

5. Tender & Manufacturing

Who: Bharatiya Reserve Bank Note Mudran Private Limited - BRBNMPL

Tender: Global EoI for 68,000 reams of BOPP polymer substrate

Split: 34,000 reams each for ₹10 and ₹20

Bid deadline: August 18 

6. Impact on Digital Payments?

MoS Finance said: "introduction of polymer notes is still in a preliminary phase and any effect on digital transactions can only be assessed after their regular issuance"

RBI view: "banknotes and digital payment systems are complementary payment tools available to public" 

7. India’s Earlier Attempt

India first tried polymer notes in 2012. A ₹10 polymer trial was planned in 5 cities but was put on hold due to tech/operational issues. Now those are resolved. 0483

8. Countries Already Using Polymer

Australia, Canada, UK, Singapore, Malaysia already use polymer. They reported 4-5x longer life + less soiling.

What Will Change For You?

New notes will feel smooth, slightly plastic, crinkle less

Won't tear easily in rain or washing machine

Will circulate with your old paper ₹10/₹20 notes

Timeline: Field trials first → then regular issuance if successful → possible expansion to other denominations from 2027.