RBI targets polymer currency-note launch by FY28, starting with ₹10 and ₹20 pilot
The Reserve Bank of India is preparing a pilot for polymer banknotes, likely in ₹10 and ₹20 denominations, with a broader rollout targeted from FY28. Paper and polymer notes are expected to coexist as the central bank tests the new substrate.
What happened
Reserve Bank of India · RBI plans to test and launch polymer currency notes by FY28, beginning with a likely Rs 10 and Rs 20 pilot. Paper and polymer notes will
Key facts
- FY28
- Rs 10
- Rs 20
- 2027
- August 18
Why this matters
Banks, cash-management firms and payment-equipment providers should evaluate partnerships with polymer-note, ATM and cash-recycler specialists to support testing, authentication and circulation logistics.
What to watch
- RBI confirmation of pilot launch date, participating cities or states, and initial note volumes.
- Final polymer-note security features, dimensions, tactile markers and machine-readable specifications.
- Bank, ATM operator and cash-management company guidance on hardware or sorting-rule changes.
- Evidence of merchant or consumer issues involving note acceptance, folding, heat exposure, counterfeiting or vending-machine rejection.
- RBI decision to extend polymer substrate beyond ₹10 and ₹20 denominations.
- Measured changes in soiled-note withdrawal rates and currency replacement costs during the pilot.
- Map cash-exposed stores, franchisees and merchant partners that receive high volumes of ₹10 and ₹20 notes.
- Ask cash-in-transit, cash recycler, ATM and vending-equipment vendors for polymer-note compatibility, sorting and calibration roadmaps.
- Update store cash-acceptance and counterfeit-escalation procedures to account for mixed paper and polymer circulation.
- Track whether polymer notes reduce soiled-note deposits, cash reconciliation exceptions and change-making losses in pilot markets.
- Avoid major capex until RBI identifies pilot geography, issue volumes, design specifications and rollout criteria.