RBI Polymer Currency Notes Pilot Project

planned

The Reserve Bank of India (RBI) is preparing to introduce polymer (plastic-based) banknotes to reduce the costs associated with damaged currency, improve durability, and enhance counterfeit protection. This pilot project aims to address the problem of worn-out currency notes, especially low-denomination notes like ₹10 and ₹20, which deteriorate quickly due to heavy handling and poor storage conditions. Polymer notes are made from polypropylene substrate, making them waterproof and more resistant to tearing, lasting two to five times longer than conventional paper notes. The RBI had previously attempted a similar initiative in 2012 but shelved it due to technological and operational challenges. With advancements in ATM compatibility and currency processing infrastructure, the RBI is now revisiting the idea as a long-term efficiency upgrade.