Government approves introduction of one billion polymer banknotes of ₹10 and ₹20
The Indian government has approved the field trial of one billion polymer banknotes in ₹10 and ₹20 denominations. Finance Minister Nirmala Sitharaman also noted that retail inflation remains within the RBI's target range despite recent global economic pressures.
Why it matters
Polymer notes are more durable and harder to counterfeit than paper, representing a significant shift in national currency management.
The government has approved the introduction of one billion polymer banknotes of ₹10 and ₹20 for field trials, Parliament was informed on Tuesday (August 11, 2026).
The Reserve Bank of India (RBI), with the recommendation of its central board, had sent a proposal to the government in terms of Section 25 of the Reserve Bank of India Act, 1934, for introduction of one billion pieces each of ₹10 and ₹20 polymer banknotes for field trials and for regular issuance of polymer banknotes in these two denominations after successful completion of field trials, Finance Minister said in a written reply to the Rajya Sabha.
"The proposal has been approved by the government. As per the RBI, these polymer banknotes are proposed to be issued along with paper substrate-based banknotes," she said.
The RBI has informed that the procurement process is presently at an initial stage, she said.
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