RBI has intensified preparations to introduce plastic (polymer) notes of Rs 10 and Rs 20. Work on the pilot project has started and the currency printing subsidiary has also issued a global tender. But along with this, people have many questions in their minds. How will this note be made, how much money will be saved, what will be the benefit to the common man and the biggest question is whether old paper notes will be discontinued? Let us understand the answer to each question sequentially. The cost of printing currency is continuously increasing. RBI spent about Rs 6,373 crore on printing notes in the year 2024-25, which was much more than Rs 5,101 crore last year. However, in the financial year 2025-26, RBI’s note printing expenditure has come down to about Rs 4,875 crore, which is about 23.5 percent less than last year. Despite this, if we look at the figures of the last five years, this expenditure has been continuously going up and down.
The second major reason is the increasing demand for cash and the number of damaged notes being destroyed. In the financial year 2025, about 2,380 crore soiled and torn notes were destroyed, whereas last year this figure was 2,124 crore. At the same time, by May 2026, the cash in circulation in the country had reached a record Rs 42.86 lakh crore, which means that despite the increase in digital payments, the demand for cash is not decreasing. For this reason, RBI has returned to polymer notes, because it can prove to be a more durable and cheaper option than paper notes.
Question- How is plastic note made and what is special in it?
answer- Polymer notes are not made from paper but from a special type of plastic sheet (polymer substrate). India’s currency printing company BRBNMPL (which runs presses in Mysore and Salboni) has invited tenders from global companies for the purchase of this substrate, which is considered a concrete step in this direction.
Features of polymer notes-
- These can last two and a half to four times longer than paper notes.
- These are more safe from water and bursting and less dirt accumulates on them.
- Many studies have also revealed that bacteria survive less on their surface.
- The transparent window and advanced security features in these make them very difficult to fake.
- ATM machines will also be prepared to dispense these notes.
Question- In which countries do plastic notes circulate?
answer- More than 60 countries around the world are using polymer notes completely or partially. In 1988, Australia became the first country to do so with a $10 note. After this, countries like Canada, United Kingdom, Singapore, Malaysia, Thailand, Indonesia, New Zealand and Vietnam also adopted plastic currency. Romania was the first European country to take this step in 1998.
Countries that have completely adopted plastic notes- Australia, Canada, New Zealand, Romania, Vietnam, Brunei, Papua New Guinea, Maldives, Mauritania, Nicaragua, Vanuatu, United Kingdom, Barbados and the Eastern Caribbean. In 2026, Oman also joined this list by issuing its 1-riyal note in polymer.
Partially adopting countries- Singapore, Malaysia, Thailand, Indonesia, Philippines, China, Hong Kong, Bangladesh, Sri Lanka, Nepal, Nigeria, South Africa, Mexico, Brazil, Chile, UAE, Saudi Arabia, Kuwait and Israel.
Question- How much money will be saved?
answer- Due to their long life and low wear and tear, polymer notes can reduce printing and replacement costs in the long run. RBI spends thousands of crores of rupees annually just on printing notes and replacing bad notes. In such a situation, durable notes can reduce this expense to a great extent. However, initially the cost of purchasing the substrate and adopting the technology will be high.
Question- What will be the benefit to the common man?
- The notes will last longer, which means there will be less hassle of changing dirty and torn notes again and again.
- The risk of notes getting damaged due to getting wet in water or minor injury will reduce.
- Identification of fake notes will be easy, as polymer notes have security features like transparent window which are difficult to copy.
- The notes will remain cleaner because less dirt and bacteria remain on them.
Question- Will old paper notes be discontinued with the introduction of new notes?
answer- No, RBI has not made any announcement yet on demonetisation of existing paper notes, and currently this initiative is limited to a pilot project only. All existing notes will remain legally valid. RBI will first assess the results of the trial, only then a decision will be taken on increasing it in the remaining denomination notes. RBI Governor Sanjay Malhotra himself also clarified in the press conference after the monetary policy of June 2026 that the proposal of polymer notes is still under consideration and no final decision has been taken on it yet. The central bank is assessing its advantages and disadvantages.
Question- When will the notes come in the market?
answer- No firm date has been decided yet. Only after the success of the pilot project, plastic notes will be issued on a large scale across the country. According to media reports, its full-scale rollout is expected to start from 2027, that is, their widespread use can be expected across the country only by next year. However, this date is still based on estimates and will depend on the results of the tender, trials and the final approval of the government.
Question- The discussion about plastic notes is not new in India.
answer- This idea has not come for the first time in India. In 2012, the then UPA government had planned to launch 100 crore polymer notes of Rs 10 each as a field trial in the five cities of Kochi, Mysore, Jaipur, Shimla and Bhubaneswar, so that their durability could be tested in different climatic conditions. However, that project could not progress due to technical hurdles. Now after a decade, RBI has revived this scheme.
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