Plastic Currency to Enter India Next Financial Year

India is set to introduce plastic currency notes from the next financial year, according to RBI Governor Sanjay Malhotra. The first phase will reportedly bring ₹10 and ₹20 polymer notes worth a combined ₹100 crore into circulation. The necessary preparations have been completed and the initiative has received central approval, he said.

The Reserve Bank plans to monitor the circulation, durability and quality of the new notes before deciding whether to extend the system to other denominations. Malhotra said studies found plastic currency to be more efficient than paper notes in terms of handling and costs. The new notes are expected to be made using a lightweight polymer material.