The Reserve Bank of India (RBI) is targeting the introduction of long-lasting polymer currency notes by the start of the 2028-29 fiscal year, Governor Sanjay Malhotra said on Wednesday.
The central bank aims to enhance the efficiency of lower denomination notes through the switch to more durable material, addressing wear and tear issues that have historically shortened the lifespan of paper currency in high-circulation environments.
6%. The move to polymer notes represents a significant operational shift for the RBI, which has previously experimented with plastic currency in limited capacities.
Malhotra made the remarks as the RBI’s Monetary Policy Committee (MPC) commenced its three-day monetary policy review.
Markets are broadly pricing in a decision to maintain the repo rate at current levels during the upcoming meeting.
The governor’s comments on currency infrastructure come alongside the RBI’s recent upward revision of its gross domestic product growth forecast for the 2026-27 fiscal year to 6.7%, up from the previous estimate of 6.6%.
The move to polymer notes represents a significant operational shift for the RBI, which has previously experimented with plastic currency in limited capacities.