The ministry said the RBI, with the recommendation of its Central Board, had proposed issuing one billion pieces each of ₹10 and ₹20 polymer banknotes for field trials. The proposal also envisages regular issuance of polymer banknotes in these two denominations after successful completion of the trials.
The ministry said the government has approved the proposal submitted by the RBI.
According to the RBI, international studies suggest that polymer banknotes have a significantly longer lifespan than paper banknotes. However, the central bank said the introduction of polymer notes is currently at a preliminary stage.
On the possible impact on digital payments, the Finance Ministry said any effect, if at all, can be assessed only after regular issuance of the polymer notes. It added that banknotes and digital payment systems are complementary payment instruments available to the public.
The ministry also clarified that the RBI proposes to issue polymer banknotes alongside existing paper-substrate banknotes. There is no proposal to replace paper currency with polymer-based banknotes, it said.
The reply came in response to a question in Parliament on the proposed introduction of plastic notes and their likely impact on currency circulation and digital payments.
First Published: Jul 27, 2026 3:30 PM IST
