RBI set to begin trial of Rs 10 and Rs 20 polymer notes from April 1, 2027

The Reserve Bank of India (RBI) is preparing to begin a pilot project of new Rs 10 and Rs 20 polymer notes from April 1, 2027. Plastic notes may thus soon be in people's hands alongside paper notes.

Under the project, 100 crore (1 billion) polymer notes of Rs 10 and 100 crore (1 billion) polymer notes of Rs 20 will be issued in the market for the trial. As this is only a field trial, the new plastic notes will remain in circulation along with the existing paper notes. The old paper notes will remain fully valid.

It is also learnt that there will be no change in the size of the notes. This will benefit banks, as they will not have to spend extra money on modifying ATMs. A senior official of a public sector bank explained that keeping the size unchanged will avoid the initial cost of ATM modifications. The official also said that since the project starts with low-denomination notes, the savings will be significant.

The reason for starting with low denominations is that Rs 10 and Rs 20 notes are the most widely used in the country. They pass from hand to hand at vegetable markets, in bus and auto-rickshaw fares and at small shops. Because of heavy use, these paper notes tear quickly, fade or get spoiled. As a result, the RBI has to destroy lakhs of old notes and print new ones every year.

In August, RBI Governor Sanjay Malhotra drew attention to the durability of polymer notes. He said that in some places polymer notes have lasted more than 30 years. He also said they would be especially useful for low-value notes that are used frequently.

Plastic or polymer notes do not tear easily. Their life is 3 to 4 times that of ordinary notes, while paper notes last only 1 to 2 years. If polymer notes last longer, the RBI will not need to reprint notes for many years, saving billions of rupees in printing costs.

Meanwhile, some photos and posts claiming that the Reserve Bank has issued new Rs 1,000 polymer notes have gone viral on social media. An official agency of the Government of India has called this claim false. The RBI has stated clearly that there is currently no proposal to introduce high-denomination polymer notes.

The RBI never announces new notes or changes in monetary policy through social media. Such information is given on its official website or through official press releases. People should therefore not believe such viral posts or messages, and should not share them.