Reserve Bank of India is studying the possibility of introducing polymer currency notes to make money more durable and cost effective. Governor Sanjay Malhotra explained that the proposal is still under consideration and the central bank is carefully reviewing its benefits and challenges before taking any step.
Polymer notes are stronger than paper notes, last longer, and are more resistant to wear and tear. They also provide better protection against counterfeiting and reduce the need for frequent replacement, which helps save printing costs.
India had earlier planned a pilot project in 2014 with ₹10 polymer notes in Kochi, Mysore, Jaipur, Shimla and Bhubaneswar. The plan was later dropped due to technical issues. Rising costs and waste from paper notes have now renewed interest in the idea.
Alongside this, the RBI announced updates in its monetary policy. The repo rate remains unchanged at 5.25%. The GDP growth forecast for FY27 has been cut to 6.6% while the inflation projection has been raised to 5.1%.
The RBI will now evaluate printing technology, operational feasibility and suitability for India’s climate and usage patterns. If successful, polymer notes could bring a major change in the way currency is managed in the country.
