The Indian may soon launch polymer banknotes  each in 10-rupee and 20-rupee denominations for field trials.  Reserve Bank of India (RBI) proposed to the government , Minister of State for Finance Pankaj Chaudhary told Parliament on Monday.

The pilot program marks India's first major step toward adopting plastic-based currency. If testing is successful, the central bank intends to move to regular issuance of the polymer notes.

Made from a specialized plastic substrate rather than conventional paper, polymer notes are widely used in several countries, including Canada, Australia, and the United Kingdom. According to the RBI, international research shows polymer banknotes offer superior durability and a significantly longer lifespan, making them particularly suited for heavy daily use in India's economy.

Addressing concerns over whether plastic cash might slow the adoption of digital payments, Chaudhary said the initiative is still in its preliminary phase. He noted that any impact on digital transactions can only be assessed once the notes enter regular circulation, adding that physical currency and digital platforms function as complementary tools rather than competing systems.

The ministry emphasized that the polymer notes will not replace paper currency. Should the pilot succeed, both paper and plastic notes will circulate concurrently.

The RBI will use the field trials to evaluate overall durability, public acceptance, and operational feasibility before deciding on a broader nationwide rollout.