₹10 and ₹20 Polymer Banknotes: Government Approves RBI Trial
Why in the news
The government accepted the RBI’s proposal to trial polymer notes in the two smallest denominations; regular issue will follow if the trials succeed.
Key facts
- Trial size: 1 billion notes each of ₹10 and ₹20.
- Route: RBI Central Board recommendation, sent under Section 25 of the RBI Act, 1934.
- Disclosed by MoS Finance Pankaj Chaudhary in the Lok Sabha, 27 July 2026.
- Section 25 means the Centre approves note design, form and material, so a paper-to-polymer switch is not the RBI’s decision alone.
| Why polymer | Detail |
|---|---|
| Longevity | About 2.5 to 4 times that of paper, per international studies cited |
| Cost | Cheaper to replace over time |
| Wear | Better against dirt, moisture and handling |
| Security | Transparent windows resist copying |
Background
- Current notes use cotton pulp and plant fibres; polymer notes use BOPP.
- Small notes wear out fastest, which makes them apt for testing.