The Reserve Bank of India (RBI) is moving forward with plans to introduce polymer banknotes, reviving an idea that has been under consideration for nearly two decades. According to reporting, the RBI has floated a tender to procure material for these polymer banknotes, signaling progress toward implementation.
Polymer notes are produced using durable plastic film rather than paper. Sources describe them as lasting longer and requiring replacement less frequently because they are more resistant to wear and tear than conventional paper notes. Alongside durability, the RBI’s approach also focuses on security features that polymer banknotes are generally designed to provide.
Reporting also indicates that India may conduct field trials soon, with the RBI printing a large batch of polymer notes for testing. The trial outcome will determine whether polymer currency is introduced more broadly. The reporting notes that several other countries, including Australia and the United Kingdom, have already adopted polymer banknotes, and that successful trials in India could lead to polymer notes circulating alongside existing paper currency.
