The government has approved introduction of plastic notes in two denominations - ₹10 and ₹20 for field trial and regular issuance. The government has however clarified that plastic currency will not replace paper currency.

Earlier, the RBI with the recommendation of its Central Board, had sent a proposal to the government for introduction of one billion pieces each of ₹10 and ₹20 polymer banknotes for field trials and for regular issuance of polymer banknotes after successful completion of field trials. The proposal has now been approved by the government.

In a written reply, Minister of State in Finance Ministry, Pankaj Chaudhary said that the RBI with the recommendation of its Central Board, had sent a proposal to the government for introduction of one billion pieces each of ₹10 and ₹20 polymer banknotes for field trials and for regular issuance of polymer banknotes after successful completion of field trials. “The proposal has been approved by the government,” he said.

The RBI's case for the switch rests on durability. According to international studies cited by the central bank, polymer banknotes last significantly longer than their paper counterparts, a practical argument for a country that circulates currency at scale. The field trial phase is designed to test how the notes perform in Indian conditions before any wider rollout.