“Currency notes made out of polymers (plastic) will be in circulation in the country from next financial year,” Reserve Bank of India (RBI) Governor Sanjay Malhotra said on Wednesday (August 5, 2026).

“We are still at a pilot [stage]. We will test, check as to how they [the polymer currency notes] perform in the Indian condition, climate and other infrastructure we have put in place. And thereafter we will see if we need to further scale it up as it is or with changes,” Mr. Malhotra said while answering a question at the post Monetary Policy Committee (MPC) press conference.

“We are targeting that they [the polymer notes] are in circulation, if everything goes as planned, in the beginning of next financial year,” he said.

He said the polymer notes will serve two purposes. “Firstly, it enhances the durability and life of lower denomination notes. Because the velocity of this segment of notes is higher, therefore the lifespan is lower. These [polymer] notes have been in circulation for more than 30 years in various countries and one finds that the life [of the note] is much more, three to four times pf the life of paper substrate,” the Governor said.

“And secondly, such polymer notes will expand RBI’s capacity as the needs of the economy grows,” he added. The Union Government recently had given its approval for printing and circulation of polymer notes.

Following this, the RBI has floated a tender for procurement of polymer substrate [polymer paper]. “Testing will be done, security clearance is required and there will be several security features in the new notes,” the Governor added.

About 60 countries have polymer notes, either fully or partially, in circulation. Some of these include Australia, United Kingdom and Vietnam, to name a few. Such notes are made from thin and flexible plastic film.