The government has approved field trials of polymer banknotes in ₹10 and ₹20 denominations, with RBI set to test their use alongside existing paper currency.

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• The Reserve Bank of India has proposed field trials of polymer banknotes in ₹10 and ₹20 denominations following approval from the central government.
• The initial trial involves 100 crore polymer notes, while the RBI plans regular issuance of these denominations if the field exercise succeeds.
• Polymer notes will initially circulate alongside existing paper currency, meaning the government has not announced any immediate replacement of conventional banknotes.
• Finance Minister Nirmala Sitharaman informed the Rajya Sabha that procurement is underway, making the exact launch timeline and expenditure unavailable currently.
• The move follows an RBI proposal submitted under Section 25 of the RBI Act, 1934, based on recommendations from the central board.
• Polymer banknotes are being considered particularly for lower denominations because they can offer greater durability and withstand frequent handling better than paper notes.
• The government has also highlighted economic measures including lower inflation, GST rate changes, reduced fuel excise duties and increased tax-free income limits.
• Sitharaman said retail inflation averaged 2.1% in 2025-26, while consumption growth and policy measures have supported household purchasing power and domestic demand.