India clears ₹10 and ₹20 polymer-note trials, with regular issuance planned

The RBI will test polymer ₹10 and ₹20 notes before regular issuance, with the new notes set to circulate alongside paper currency rather than replace it. The move could affect cash-handling durability and costs for retailers and banks.

— Source publishedMon, 27 Jul, 2026, 19:05 IST·First seen Mon, 27 Jul, 2026, 20:02 IST·Source The Hindu BusinessLine

What happened

Reserve Bank of India · India approved field trials and eventual regular issuance of ₹10 and ₹20 polymer notes. RBI says plastic notes will circulate alongside

Key facts

  • ₹10
  • ₹20
  • 1 billion pieces each
  • 68,000 reams
  • 34,000 reams per denomination
  • 30% minimum bid quantity
  • 20,400 reams
  • 2,810 crore currency notes supplied
  • ₹4,800 crore spent on note printing
  • 1,700 crore soiled notes destroyed
  • 11.9% increase in value of notes in circulation
  • 10.5% increase in volume of notes in circulation

Why this matters

Banks, cash-logistics firms and payment-infrastructure players should monitor the trials for opportunities in polymer-note validation, sorting and ATM compatibility as issuance scales.

What to watch

  • RBI announcement of trial geographies, duration, volumes and evaluation criteria.
  • Reports of ATM, cash recycler, vending or note-sorting compatibility issues.
  • RBI or bank data on note lifespan, replacement rates, counterfeiting and clean-note circulation.
  • Expansion from ₹10 and ₹20 notes to additional denominations.
  • Changes to currency-printing, cash-logistics or damaged-note exchange policies.
  • Banks and cash-management firms audit ATM, sorter, recycler and note-authentication compatibility for polymer substrates.
  • Large cash-heavy retailers update cashier guidance on note feel, verification and damaged-note handling.
  • ATM operators and retail cash logistics providers track note-fit, jam and recirculation performance during field trials.
  • Payment providers and merchants use the rollout to reinforce digital-payment adoption, especially where low-value cash transactions remain operationally costly.

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