The Reserve Bank of India (RBI) is exploring the introduction of polymer-based currency notes in the country, Governor Sanjay Malhotra announced on Friday, as cash circulation continues to surge.
Malhotra said the proposal is currently at its preliminary stage. The move revives a plan first discussed nearly a decade ago when the central bank considered printing plastic notes to improve durability and reduce replacement costs.
RBI officials noted that the increasing volume of discarded paper currency and the higher cost of printing have prompted renewed interest in polymer notes. These notes are expected to last longer, resist wear and tear, and offer enhanced security features.
In February 2014, the government informed Parliament that one billion plastic notes of Rs 10 denomination would be introduced in a trial across five cities — Kochi, Mysore, Jaipur, Shimla, and Bhubaneswar — chosen for their diverse climatic conditions. The initiative was later paused due to technological and operational challenges.
The RBI’s renewed focus on polymer notes aligns with global trends, as several countries, including Australia, Canada, and the UK, have already adopted plastic currency for improved longevity and security.
Officials emphasised that the proposal remains under evaluation, and a final decision will follow detailed feasibility studies.
