Government Approves Polymer ₹10 and ₹20 Banknotes

The Government of India approved a proposal of the Reserve Bank of India to introduce one billion polymer banknotes each in the ₹10 and ₹20 denominations on 27 July 2026. The approval covers field trials, and regular issuance will begin only after successful trials. The proposal was placed under Section 25 of the Reserve Bank of India Act, 1934, after a recommendation from the RBI Central Board.

Polymer Banknotes

Polymer banknotes are currency notes printed on a plastic-based substrate instead of conventional paper pulp. Countries such as Australia, Canada, New Zealand, and the United Kingdom have used polymer notes in different denominations. Polymer substrates are known for resistance to moisture, dirt, and tearing, and they generally have a longer circulation life than paper-substrate notes.

Indian Currency Note System

India issues banknotes in multiple denominations through the Reserve Bank of India, while coins are issued by the Government of India. The Mahatma Gandhi series is the current banknote series in circulation in India. The ₹10 and ₹20 notes are among the lower denominations used widely in retail transactions and public transport payments.

Printing and Supply Arrangements

Bharatiya Reserve Bank Note Mudran Private Limited is the currency-printing subsidiary of the Reserve Bank of India. On 17 July 2026, it floated a Global Expression of Interest for the supply of opacified polymer substrate sheets. Opacified polymer substrate is the base material used for security printing of polymer currency notes.

Important Facts for Exams

• Section 25 of the Reserve Bank of India Act, 1934 deals with the form and design of banknotes in India.
• Polymer notes are used in several countries for their durability and resistance to wear.
• Field trials are a standard testing phase before regular circulation of a new currency format.
• Bharatiya Reserve Bank Note Mudran Private Limited is one of the two currency note printing presses associated with the RBI system in India.

Circulation and Policy Status

The government has stated that polymer banknotes will circulate alongside existing paper-substrate banknotes. There is no current plan to replace paper currency entirely. Any assessment of the effect on digital payment systems will be made after regular issuance begins.