India's Plastic Banknote Rollout Still Months Away, Sitharaman Says

Polymer notes are made from a plastic substrate rather than the cotton-based paper used for traditional currency. They last longer in circulation, resist moisture and dirt, and can incorporate advanced security features like see-through windows and micro-optic holograms. Around 60 countries, including Australia, Canada, the UK and Singapore, already use them.

The central bank has been exploring polymer notes for over a decade. Media reports in May suggested the RBI was reviving the plan partly to cut the cost of printing paper currency and replacing soiled notes at high volume.

When Malhotra first said the move was under consideration in June, incorrect reports on social media claimed the RBI would withdraw all currency and replace it with plastic notes by the end of that month. The government issued a clarification urging the public to ignore the rumors.

Sitharaman's response Tuesday made clear the timeline remains uncertain. "The procurement process is presently at an initial stage," she said. The notes are proposed to be issued alongside paper-based banknotes, not as a replacement.

For now, the only concrete number on the table is 1 billion pieces each of the two smallest denominations, and only for field trials. A broader rollout, if it happens, will not come before the next fiscal year starting April 2027.