RBI to trial ₹3,000 crore of polymer ₹10 and ₹20 notes across five cities

The RBI will issue 100 crore polymer notes each in ₹10 and ₹20 denominations for a field trial in Kochi, Mysuru, Shimla, Jaipur and Bhubaneswar. The notes will circulate alongside paper currency; broader issuance will depend on trial results.

— Source publishedMon, 27 Jul, 2026, 20:00 IST·First seen Mon, 27 Jul, 2026, 20:08 IST·Source Indian Express · Business

What happened

Reserve Bank of India · RBI will trial 100 crore polymer notes each in Rs 10 and Rs 20 denominations, valued at Rs 3,000 crore. The notes will circulate

Key facts

  • 100 crore Rs 10 notes
  • 100 crore Rs 20 notes
  • Rs 3,000 crore total value
  • 3.4 crore polymer sheets tendered
  • Rs 10 and Rs 20 notes comprise nearly one-quarter of notes by volume
  • 1.3% of currency value in circulation
  • 2009 prior polymer-note trial
  • More than 50 countries use polymer banknotes

Why this matters

Cash-management, ATM, vending and note-processing firms can use the five-city trial to validate polymer-note compatibility and pursue RBI-linked servicing, authentication and recycling opportunities.

What to watch

  • RBI publication of pilot metrics on note life, soiling, counterfeit detection, ATM performance and replacement costs.
  • Reports of polymer-note acceptance issues at retailers, vending machines, ticketing systems, bank counters or ATMs.
  • Expansion of the trial to additional denominations or cities after the initial circulation period.
  • RBI procurement orders for polymer substrates, printing capacity or upgraded currency-processing equipment.
  • Any formal RBI statement comparing lifecycle cost per polymer note against cotton-paper notes.
  • Retailers and bank branches in the five pilot cities should monitor acceptance, change-making and counterfeit-screening performance for ₹10 and ₹20 notes.
  • ATM operators, cash-in-transit firms and currency-sorter vendors should test machine compatibility, sensor settings and note-jam rates.
  • High-cash merchants should track whether cleaner, more durable small notes reduce rejection of worn currency and cash-handling time.
  • Payments firms should avoid interpreting the pilot as a near-term signal of reduced cash usage; it is a currency-material test, not a digital-payments substitution policy.