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Hope to launch polymer bank notes at start of FY28, says Malhotra
This story was originally published at 15:34 IST on 5 August 2026
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--RBI Malhotra: Polymer bank notes increase durability, lifespan
--RBI Malhotra: Will test polymer bank notes in various conditions
--RBI Malhotra: Hope to launch polymer currency notes by start of FY28
MUMBAI – The Reserve Bank of India hopes the polymer currency notes will be in circulation at the beginning of the financial year 2027-28 (Apr-Mar), Governor Sanjay Malhotra said at a press conference Wednesday after the conclusion of the Monetary Policy Committee's third bi-monthly meeting for FY27.
The polymer banknotes serve two purposes – they enhance the durability and lifespan, especially of lower denomination notes where the velocity is higher, and they expand the capacity as the needs of the economy grow, the governor said. "This is still a pilot. We will test, check as to how they perform in the Indian conditions, climate, and other infrastructure that we have put in place. And it's only thereafter that we will see if we need to further scale it up as it is or with changes," Malhotra said.
The government has approved the central bank's proposal to introduce polymer banknotes for field trial, Minister of State for Finance Pankaj Chaudhary had told the Lok Sabha in a written reply last month. Initially, one billion polymer banknotes of denominations INR 10 and INR 20 will be rolled out. The polymer notes are proposed to be issued along with paper substrate-based banknotes. "There is no proposal to replace paper currency with polymer substrate-based banknotes," Chaudhary had said.
The Monetary Policy Committee Wednesday left the policy repo rate unchanged at 5.25% in a unanimous decision. The committee also decided to continue with its neutral stance.
Reported by Nandini Sinha
Edited by Shubhayan Bhattacharya
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