The Centre has authorised the Reserve Bank of India (RBI) to issue up to two billion polymer banknotes in the ₹10 and ₹20 denominations, paving the way for a pilot rollout of more durable currency.
The approval allows the RBI to issue one billion notes of each denomination. Unlike paper notes, polymer banknotes are made from flexible plastic, making them more resistant to wear, moisture and dirt while improving security features.
Existing paper notes will continue as legal tender, with polymer notes introduced gradually to reduce replacement costs and improve the lifespan of India’s most frequently used currency.