Overview
- Multiple reports on Friday said the Reserve Bank of India has revived plans to test polymer banknotes and that a pilot involving lower denominations may be launched in the near term.
- The move is driven by rising currency-in-circulation and higher printing and replacement bills, with the RBI recording a jump in printing expenditure to ₹6,372.8 crore in FY25.
- RBI annual-report data show counterfeit detections rose 5.7% in 2025–26 to 229,746 pieces and that fake ₹500 notes climbed about 20%, which officials say strengthens the case for more durable substrates and upgraded security features.
- Sources told reporters that modern ATMs and note-authentication systems are now seen as able to handle polymer notes and that starting with ₹10 and ₹20 would target the fastest-wearing denominations.
- India previously shelved polymer trials after technical and ATM compatibility problems, and global experience shows polymer notes last roughly 2.5–4 times longer than cotton paper but cost more to produce upfront.