Plastic notes to be introduced along with paper currency, no time frame on launch yet: Govt

Union Finance Minister Nirmala Sitharaman

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Finance Minister Nirmala Sitharaman on Tuesday informed Parliament that the government has approved introduction of one billion polymer banknotes of ₹10 and ₹20 for field trials. As per the proposal sent by RBI, these polymer banknotes are proposed to be issued along with paper substrate-based banknotes, she said adding the procurement process is presently at an initial stage.“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 RBI 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. The proposal has been approved by the Government,” she said in a written reply in the Rajya Sabha.Minister of State for Finance Pankaj Chaudhary on July 27 had told the Lok Sabha (in a written reply) that the RBI had informed the government that as per international studies, the life span of polymer banknotes is significantly higher than that of paper banknotes. The introduction of polymer banknotes is currently in a preliminary phase and the impact on digital payments, if any, could be ascertained only after regular issuance of these notes. Moreover, banknotes and digital payment systems are complementary payment tools available to public, he had said.“As per RBI, polymer banknotes are proposed to be issued along with paper substrate-based banknotes and that there is no proposal to replace paper currency with polymer substrate-based banknotes,” Chaudhary had clarified.On July 17, RBI-owned Bharatiya Reserve Bank Note Mudran (P) Ltd (BRBNMPL) had floated a global expression of interest (EoI) for manufacturing and supply of polymer substrate used to print plastic currency notes.Bid documentThe EoI document placed the indicated requirement for ‘Biaxially oriented polypropylene (BOPP)-based opacified polymer substrate with security features for printing of Indian banknotes has been set at 68,000 reams with 34,000 reams for each denomination. Each ream will consist of 500 sheets. The bidder should offer minimum 30 per cent of the above quantity i.e., at least 20,400 reams of polymer substrate for banknotes to qualify in this EoI, the document said.“The indicative requirement in this EoI is meant for immediate requirement. Once our field trials are successful, we intend to go for procurement of larger quantity of substrate across different denominations and the same is likely to be shared in the upcoming RFP/final tender or in future tenders which shall follow this EoI,” the document said.According to RBI annual report, total of 2,810 crore pieces of currency notes supplied by BRBNMPL and Security Printing and Minting Corporation of India Ltd. The central bank spent over ₹4,800 crore during the fiscal on printing notes. During the same year, it destroyed 1,700 crore pieces of soiled notes. In the same year, the value and volume of banknotes in circulation increased by 11.9 per cent and 10.5 per cent respectively.Published on August 11, 2026