Which Countries Use Plastic Notes That RBI Says Will Enter Indian Wallets Next Year?

Published 5 August 2026 · finance

News business economy Which Countries Use Plastic Notes That RBI Says Will Enter Indian Wallets Next Year? Which Countries Use Plastic Notes That RBI Says

News business economy Which Countries Use Plastic Notes That RBI Says Will Enter Indian Wallets Next Year? Which Countries Use Plastic Notes That RBI Says Will Enter Indian Wallets Next Year? Published By, Last Updated: August 05, 2026, 16:02 IST RBI Governor Sanjay Malhotra says polymer notes could enter circulation next year. See which countries already use plastic currency and why it lasts longer. RBI Governor Sanjay Malhotra said the central bank is targeting the rollout of durable polymer currency notes at the beginning of the next financial year, subject to a successful pilot. (IMAGE: PTI) You return from the neighbourhood grocer with a damp ₹20 note. Or perhaps a crumpled ₹10 note that has changed hands so many times it is barely recognisable. It is a familiar sight in India, where lower-denomination currency circulates rapidly and often wears out within months. That could begin to change next year. Reserve Bank of India (RBI) Governor Sanjay Malhotra on Wednesday said the central bank is targeting the rollout of durable polymer currency notes at the beginning of the next financial year. If the plan goes ahead, India will join more than 60 countries that already use polymer banknotes, including Australia, the United Kingdom, Canada and Singapore. RBI Targets Polymer Notes From Next Financial Year Speaking to reporters after the Monetary Policy Committee (MPC) meeting, Malhotra said the RBI is aiming to introduce polymer notes at the beginning of the next financial year, provided everything goes according to plan.

“We are targeting that they are in circulation, if everything goes as per plan, in the beginning of the next financial year," he said. The RBI Governor said polymer notes have lasted for over 30 years in some countries and would be especially useful for lower-denomination notes, which have a higher velocity of circulation and therefore wear out much faster. “The polymer note enhances durability and life, and is relevant for lower denomination due to higher velocity," Malhotra said, adding that polymer notes would also expand the RBI’s currency management capacity as the needs of the economy grow. However, he clarified that the rollout would initially be a pilot project to evaluate how polymer notes perform under Indian climatic conditions before any wider adoption. What Are Polymer Notes? Unlike conventional banknotes made primarily from cotton paper, polymer notes are manufactured using a durable plastic film. Because they are non-porous and more resilient, polymer notes generally Last significantly longer than paper notes. Resist moisture, dirt and tearing better. Stay cleaner despite frequent handling. Include advanced security features that are more difficult to counterfeit. Reduce replacement costs because they remain in circulation for longer. For India, where lower-value currency changes hands countless times every day at vegetable markets, grocery stores, tea stalls and bus stops, greater durability could mean fewer worn-out notes entering circulation.