Plastic Note: Preparations are underway to replace 10 and 20 rupee notes in the country. According to the RBI, 10 and 20 rupee notes will now be available in plastic form. Read the full story.

Preparations underway to replace Rs 10 and Rs 20 notes with plastic notes

10 and 20 Rupees Plastic Notes: It's the era of UPI. People rarely carry cash. The reason is valid, as paper notes deteriorate quickly and tear easily. However, this problem is about to end, as the notes in your pocket may soon be made of plastic.

The Reserve Bank of India's note printing wing, BRBNMPL, has issued a global tender for the production of plastic notes. The company has invited expressions of interest (EOIs) from companies worldwide to manufacture and supply polymer sheets, marking the official start of the process of procuring the plastic material needed for printing notes. Initially, 10 and 20 rupee notes may be introduced as a pilot project.

After all, what are plastic notes?

Plastic notes are called polymer notes. They are printed not on ordinary plastic, but on a special, strong plastic film. This film is coated with a white coating to allow for the printing of the note. The note also features a transparent window, which is considered its most important security feature. This makes counterfeiting such notes extremely difficult.

Which notes can be exchanged first?

Experts believe that if the pilot project is implemented, the 10 and 20 rupee notes could be the first to be made in polymer. The reason is that these are the most widely used and also wear out the fastest.

How big is this step by the RBI?

BRBNMPL is the same company that prints Indian currency at its presses in Mysore and Salboni. When this same company is seeking proposals from global companies to purchase polymer sheets, this is not just an idea but a concrete sign of preparation. However, this does not mean that plastic notes will be available in the market next month. The process is currently in its initial stages.

In a press conference after the monetary policy on June 5, 2026, RBI Governor Sanjay Malhotra stated that the proposal for polymer notes was under consideration. He clarified that no final decision had been made and that the central bank was assessing the pros and cons.

The story is not new.

• The idea of ​​polymer notes in India is about 14 years old.
• It was first discussed around 2009.
• In 2012, the government approved the field trial of 100 crore polymer notes of Rs 10.
• In 2014, it was decided that these would be tested in different weather conditions in Kochi, Mysore, Jaipur, Shimla and Bhubaneswar.
• In 2016, the government reported that the process of procuring materials had begun, but due to technical and operational reasons, the plan could not proceed further, and the project was shelved.

Why did the preparations start again now?

Digital payments have grown rapidly, but the demand for cash is also steadily increasing. By May 2026, cash in circulation in the country reached a record high of ₹42.86 lakh crore. On the other hand, a large number of torn and soiled notes are being destroyed every year. In 2024-25, approximately 23.8 billion notes were removed from circulation. Printing notes also costs thousands of crores of rupees each year. Therefore, long-lasting polymer notes could be a cost-saving option for the government and the RBI.

Advantages of plastic notes

• The biggest advantage is their longevity.
• These can last two and a half to four times longer than paper notes.
• These do not get damaged quickly by water, do not tear easily and also attract less dirt.
• Several studies have found that bacteria are less likely to survive on their surfaces. Most importantly, their transparent windows and advanced security features make them extremely difficult to counterfeit.

But the challenges are no less

• Polymer notes are initially expensive because they require special material which may have to be purchased from abroad at present.
• ATMs and note counting machines across the country may also have to be upgraded to accommodate the new notes.
• In a hot country like India, the impact of extreme temperatures is also considered a challenge. Furthermore, people in several countries have complained that the new polymer notes stick together and develop permanent creases when folded.

Where in the world are polymer notes accepted?

Australia first introduced polymer notes in 1988 and later replaced the entire currency.

Subsequently, more than 40 countries, including Canada, Britain, New Zealand, Singapore, Vietnam, Malaysia, and Brunei, adopted them. Experience from these countries shows that while the initial cost is higher, the notes prove to be more durable in the long run.

What will happen next?

Currently, the EOI is only the first step. Following this, numerous processes such as tenders, technical scrutiny, sample testing, security testing, and pilot printing will follow, meaning paper notes aren't going away just yet. If everything goes according to plan, small-denomination notes may be introduced, and for a time, both paper and polymer notes will circulate simultaneously. For now, it's safe to say that the polymer note project, stalled for 14 years, appears to be moving forward with greater seriousness than before.