Govt approves plastic notes of Rs 10 and Rs 20 on trial basis

Mangalore Today News Network

New Delhi, Aug 12, 2026: Rs 10 and Rs 20 polymer banknotes are likely to enter circulation soon, with the government approving their introduction on a trial basis, Finance Minister Nirmala Sitharaman informed Parliament on Tuesday.

The Reserve Bank of India (RBI) proposes to issue one billion pieces each of Rs 10 and Rs 20 polymer banknotes for circulation as part of the field trials.

This would amount to Rs 3,000 crore worth of notes, comprising Rs 1,000 crore in Rs 10 denomination and Rs 2,000 crore in Rs 20 denomination.

The government has also approved the regular issuance of polymer banknotes in these two denominations following the successful completion of the field trials.

“The proposal has been approved by the government. As per RBI, these polymer banknotes are proposed to be issued along with paper substrate-based banknotes,” Sitharaman said in response to a question in the Rajya Sabha.

However, the exact timeline for their introduction has not yet been finalised. Sitharaman said the RBI had informed the government that the procurement process was still at an initial stage.

“Therefore, at this point of time, it would not be possible to practicably determine the exact timeframe for introduction of polymer banknotes or the expenditure likely to be incurred,” she said.

Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL), the RBI’s wholly owned subsidiary, had last month floated a global tender for 3.4 crore polymer sheets suitable for printing banknotes.

RBI Governor Sanjay Malhotra had said last week that polymer currency notes were likely to enter circulation from the beginning of the next financial year.

Polymer banknotes are made using a specially engineered plastic substrate designed for currency printing. Countries including the UK, Canada and Australia have adopted polymer notes, which are more water-resistant and durable than conventional paper currency.

According to RBI data, more than 2,821.48 crore Rs 10 banknotes were in circulation as of August 7, 2026, while the number of Rs 20 notes stood at 1,431.65 crore.

Overall, India had 17,587.36 crore banknotes in circulation as of August 7, with a total value of Rs 42.43 lakh crore.