Plastic Currency in India: Government Approves RBI Trials for ₹10 and ₹20 Polymer Notes
The central government of India approved the Reserve Bank of India (RBI) proposal to conduct a field trial of polymer based plastic bank notes. The RBI will introduce one billion ₹10 and one billion 20 polymer notes in the market.
The Central Bank has notified that these notes will be introduced on a pilot or phased basis. The existing paper currency will not be phased out immediately. Instead both currencies will co-exist in circulation
The objective is to print plastic currency to combat high costs associated with frequent replacement of soiled paper notes and to tackle the persistent issue of counterfeit notes.
Highlights
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The Government of India granted permission to the RBI to print Polymer based notes for a field trial.
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The total is two billion ( 200 Crore) notes. Where one billion each for ₹10 and ₹20 denominations. ( Note: the notes will be printed and circulated on a trial basis).
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The Government of India has clearly mentioned that it will not replace the current paper currency. Both currencies will function coexistentially.
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Globally, plastic currency is used by over 60 countries including Australia, the United Kingdom and New Zealand.
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The tender for printing the currencies has been given to Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL). It is a RBI's currency printing subsidiary. It has floated an expression of interest (EoI) to source specialised opacified polymer substrate sheets.
What is Plastic or Polymer Currency?
The polymer currency refers to banknotes manufactured from specialised and non-porous plastic. The plastic used for notes is polypropylene or biaxially oriented polypropylene(BOPP). The traditional paper currency notes are made from cotton and linen fibers.
Characteristics of Polymer notes are
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Due to their non-porous surface they do not absorb moisture, sweat or dirt making them significantly more hygienic than paper notes.
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The polymer technology allows the integration of sophisticated optical security features such as transparent windows and complex holographic elements that are difficult to replicate
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Polymer notes can be recycled into other everyday plastic goods at the end of the lifecycle.
Difference between Paper Currency and Polymer (Plastic) Currency
| Feature | Traditional Paper Currency | Polymer or Plastic Currency |
| Material | cotton and cotton rag-based paper | made from biaxially oriented polypropylene (BOPP) plastic |
| Average Lifespan | 6 months to 2 years (depending on denomination and usage) | 2.5 to 5 times longer than paper notes |
| Durability and Resilience | prone to tearing, water damage, limpness, and staining over time. | Tear-resistant, waterproof, and retains crispness despite heavy handling. |
| Hygiene | absorbs sweat, oils, and bacteria, accumulating grime easily. | non-porous and water-resistant. It can be wiped clean. |
| Security Features | watermarks, security threads and optically variable ink. | transparent windows, shadow images, and embossed tactile features. |
| Production Cost | cheaper to produce on a per unit basis initially but shorter lifespan | higher initial setup and printing cost but longer stability |
Manisha Waldia is a distinguished content strategist with 5 years of experience crafting premium educational content for UPSC and State PCS, with a focus on deep conceptual analysis across Polity, Geography, History, and Environment. She currently brings this expertise to Jagran Josh, where she covers major national and international events, current affairs, and static general knowledge. Over her career, Manisha's specialized insights have led her to curate high-impact materials and serve as a UPSC Mains answer-evaluator for India’s top institutes—including Drishti IAS, Shubhra Ranjan IAS, Study IQ, GS Score, and PWonlyIAS. She has also worked alongside leading NGOs like Oxfam India and Avani Kumaon.
Contact: manisha.waldia@jagrannewmedia.com
