The Reserve Bank of India (RBI) is preparing to test polymer banknotes in ₹10 and ₹20 denominations, with the pilot reportedly expected to begin on April 1, 2027. The notes are expected to retain the dimensions of existing currency, helping banks avoid the cost of reconfiguring ATMs.
The proposed rollout follows the government’s approval for field trials of one billion notes of each denomination. Any wider issuance will depend on how the notes perform during testing.
Polymer Notes to Be Tested in ₹10 and ₹20 Denominations
The RBI’s plan covers 100 crore ₹10 notes and 100 crore ₹20 notes, with a combined face value of ₹3,000 crore. The notes will be made using polymer substrate rather than the cotton-based paper currently used for Indian banknotes.
The trial is intended to assess how polymer notes withstand Indian weather, handling and day-to-day circulation. Lower-denomination notes are used frequently and are more prone to wear and tear.
Existing Dimensions Could Help Avoid ATM Costs
According to a report by Moneycontrol, the RBI plans to retain the current dimensions of ₹10 and ₹20 notes. This could help banks avoid modifying ATM cash-dispensing cassettes, sensors and other components.
The pilot may initially distribute polymer notes through bank branches, without requiring immediate ATM hardware changes. The dimensions decision has been reported by media citing sources familiar with the plan; the RBI has not publicly confirmed it.
Paper Notes Will Continue to Circulate
The government has clarified that polymer notes are expected to circulate alongside existing paper-substrate banknotes. There is currently no proposal to replace paper currency entirely.
The field trial is a preliminary step. Regular issuance of polymer notes in these denominations will depend on the successful completion of the tests.
Why the RBI Is Considering Polymer Currency
Polymer banknotes are generally more durable than paper-based notes and can last several times longer, according to the RBI’s statements on the proposal. A longer lifespan could reduce the frequency with which heavily used notes need to be replaced.
India has explored polymer currency before. An earlier plan to test ₹10 polymer notes in five cities did not lead to regular circulation after technical issues emerged.
The proposed trial is therefore intended to evaluate whether polymer notes can meet India’s operational and climatic requirements before the RBI considers wider use.
April 2027 Timeline Is Not a Confirmed Nationwide Launch
The reported April 1, 2027 date is a target for the pilot, not confirmation of a nationwide release. The trial’s outcome, supplier selection and operational preparations will determine whether and when polymer notes enter wider circulation.
For now, existing ₹10 and ₹20 paper notes remain valid, and the RBI has not announced any withdrawal of them.
