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

The RBI will test 100 crore polymer ₹10 notes and 100 crore polymer ₹20 notes, circulating them alongside paper currency in Kochi, Mysuru, Shimla, Jaipur and Bhubaneswar. The Finance Ministry said there is no proposal to replace paper notes nationwide.

— Source publishedMon, 27 Jul, 2026, 20:00 IST·First seen Mon, 27 Jul, 2026, 20:02 IST·Source Indian Express · Business

What happened

Reserve Bank of India · RBI will trial 100 crore polymer Rs 10 notes and 100 crore Rs 20 notes, worth Rs 3,000 crore. The Finance Ministry said plastic notes

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 25% of notes by volume
  • Rs 10 and Rs 20 notes represent 1.3% of currency value in circulation

Why this matters

There is no immediate deal implication, though cash-logistics, ATM, vending and note-processing providers may gain future upgrade opportunities if polymer currency scales nationally.

What to watch

  • RBI publication of pilot start dates, allocation details and evaluation metrics.
  • Reports of polymer-note compatibility issues with ATMs, vending machines, ticketing machines or cash recyclers.
  • Changes in damaged-note withdrawal rates or bank cash-handling costs in pilot cities.
  • Counterfeit, tampering or public-acceptance data relative to paper ₹10 and ₹20 notes.
  • Any RBI or Finance Ministry statement on expanding the trial, adding denominations or considering national rollout.
  • Cash-heavy retailers in Kochi, Mysuru, Shimla, Jaipur and Bhubaneswar should brief frontline cashiers that polymer and paper ₹10 and ₹20 notes will circulate together and remain valid tender.
  • Retail chains should track damaged-note rates, customer refusal incidents, counterfeit suspicions and cash-reconciliation variances separately for polymer notes during the trial.
  • Cash-management vendors, banks and self-service machine operators should test sorting, counting, ATM, vending and note-acceptor performance with polymer denominations.
  • Merchants should avoid changing cash acceptance policies until RBI or the Finance Ministry issues formal nationwide guidance.