The Reserve Bank of India (RBI) is conducting a pilot project to test polymer banknotes under Indian conditions, aiming for a full rollout by the fiscal year 2027-28, RBI governor Sanjay Malhotra said on Wednesday. The pilot focuses on assessing the durability and security features of polymer notes in the country’s diverse climate and infrastructure, according to livemint.com.
Governor Malhotra explained that the pilot will evaluate how polymer banknotes perform in India’s environment before deciding on scaling up production. The RBI will consider whether to proceed with the current design or make modifications based on the pilot results. Polymer notes can include advanced security elements such as see-through windows, micro-optic holograms, and specialized inks, which enhance counterfeit resistance, the report added.
The shift to polymer banknotes aligns with global trends where central banks adopt polymer currency to improve longevity and security. Compared to traditional paper notes, polymer notes typically last longer and reduce replacement costs. The RBI’s move follows similar initiatives by other countries to curb counterfeiting and improve currency durability, reflecting a broader modernization of India’s currency system.
The RBI’s pilot program is ongoing, with the central bank set to review findings before deciding on the nationwide rollout. The fiscal year 2027-28 remains the target for introducing polymer banknotes across India, marking a significant step in the country’s currency evolution, as reported by livemint.com.