New Delhi, Aug 5: The Reserve Bank of India (RBI) is preparing to introduce polymer currency notes by the financial year 2027-28, aiming to improve the durability, security, and overall quality of currency circulation in the country.
RBI Governor Sanjay Malhotra said the move is part of efforts to modernise India’s currency management system and explore more durable alternatives to traditional paper-based notes.
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Polymer notes are made using a special plastic-based material that is expected to last longer than conventional paper currency. They are also more resistant to damage caused by moisture, dirt, and frequent handling, which could help reduce the cost of replacing worn-out notes.
The introduction of polymer currency is expected to strengthen security features and make it more difficult to counterfeit, while improving the overall efficiency of cash management.
Several countries across the world have already adopted polymer banknotes due to their longer lifespan and enhanced security features. The RBI’s move reflects the growing need to modernise currency systems while maintaining the reliability of cash transactions.
India continues to witness strong demand for physical currency, even with the rapid growth of digital payments. The proposed polymer notes are expected to complement existing currency systems and provide citizens with more durable banknotes.
The RBI will work on the design, testing, and implementation process before the planned rollout. The transition to polymer currency is expected to be carried out gradually to ensure smooth circulation and public convenience.
The initiative marks another step towards improving India’s currency infrastructure by combining advanced technology with secure and efficient financial systems.