Parliament was informed on Tuesday, August 11, that the government has approved the introduction of one billion polymer banknotes, each worth Rs 10 and Rs 20, for field testing.
Finance Minister Nirmala Sitharaman stated in a written response to the Rajya Sabha that the Reserve Bank of India (RBI), acting on the advice of its central board, had sent a proposal to the government under Section 25 of the Reserve Bank of India Act, 1934 for the introduction of one billion pieces each of Rs 10 and Rs 20 polymer banknotes for field trials, followed by regular issuance in these two denominations once the trials concluded successfully.
“The government has approved the idea. These polymer banknotes are intended to be issued alongside banknotes with paper substrates, according to the RBI,” she stated. The RBI has stated that the procurement process is still in its early stages, the minister continued. Because of this, she stated, it would not be possible to determine the exact date for the rollout of the polymer notes or the anticipated cost at this time.
In response to a different question, Sitharaman stated that the Consumer Price Index, which measures average retail inflation, has steadily decreased from 5.4% in 2023–2024 to 4.6% in 2024–2025 and then to 2.1% in 2025–2026.
Nevertheless, she noted, this is still below the RBI’s 4% inflation objective.
She also emphasized policies that have boosted household consumption, like income tax relief and GST rationalization.