RBI plans polymer Rs 10 and Rs 20 notes from FY28, subject to trials
The RBI plans to introduce 100 crore polymer notes each in Rs 10 and Rs 20 denominations from the start of FY28, contingent on field trials. Longer-lasting notes could reduce replacement cycles and alter cash-handling dynamics for high-volume retailers.
What happened
Reserve Bank of India · RBI plans to introduce 100 crore polymer Rs 10 and Rs 20 notes each from the start of FY28, subject to trials. The more durable notes
Key facts
- Rs 10
- Rs 20
- 100 crore notes of each denomination
- Rs 3,000 crore
- 3.4 crore polymer sheets
- 2-4 times paper-note lifespan
Why this matters
Payments and retail-infrastructure buyers should assess partnerships or targets in cash recyclers, note validators and cash-logistics services ahead of any polymer-driven equipment upgrade cycle.
What to watch
- RBI confirmation of field-trial locations, duration, technical specifications and FY28 issuance timetable.
- Results on polymer-note durability in Indian heat, humidity, dust and high-folding-use conditions.
- Guidance from banks, NPCI-adjacent payment operators, ATM deployers and cash-management companies on machine compatibility.
- Procurement announcements for polymer substrate, printing, authentication features and note-processing equipment.
- Retailer and consumer reports of acceptance issues, especially at ATMs, vending machines, parking systems and automated kiosks.
- Any RBI expansion beyond the initial 100 crore notes per denomination or extension to higher-value denominations.
- Audit checkout, cash-office, self-checkout and vending equipment for polymer-note acceptance once RBI publishes note specifications.
- Ask banking and cash-in-transit partners whether sorting, authentication and ATM equipment will require software, sensor or calibration upgrades.
- Track the mix of Rs 10 and Rs 20 cash tendered by store format; kirana-adjacent, transit, value and rural-heavy formats are most exposed.
- Use the transition period to tighten procedures for damaged-note acceptance, counterfeit escalation and cashier training.
- Avoid assuming cash demand will rise: treat the initiative primarily as a cash-quality and circulation-efficiency change alongside continued UPI growth.