Big change in ₹10 and ₹20 notes! RBI will soon bring plastic notes, know whether old paper notes will be banned? – ..

A big step is being taken in the direction of making small denomination notes more durable and secure in the country. While giving official information in the Parliament on July 27, 2026, the Central Government informed that the Reserve Bank of India (RBI) will issue Rs 10 and ₹ 20 denomination notes. polymer (plastic) bank notes The proposal for field trial has been approved by the government.

The Finance Ministry, in a written reply to a question asked in Parliament, clarified that the main objective of this step is to practically test the utility, strength and lifespan of the highly used daily ₹10 and ₹20 notes.

100-100 crore pieces of polymer notes will be tested

Based on the recommendation of the Central Board of RBI, the central bank will issue notes for ₹10 and ₹20 denominations. 1-1 billion (100-100 crore) pieces Will conduct extensive trials across the country by issuing polymer notes.

• What will happen if the trial is successful? According to the government, if this field trial is successful, regular production and circulation of polymer notes of both these denominations will be started in future.

• However, the central bank has clarified that currently the introduction of polymer notes is in its initial and experimental stage.

Why was there a need for polymer (plastic) notes?

Polymer notes have several major advantages over paper currency:

1. live long: According to international studies, polymer notes last 3 to 4 times longer than paper notes.

2. Waterproof and mess-free: These notes do not get spoiled by water, do not get wet quickly due to moisture or sweat and do not easily get dirt or grease deposited on them.

3. Less risk of bursting: Paper notes of ₹ 10 and ₹ 20 get worn out very quickly in everyday transactions (vegetables, grocery, bus fare etc.), whereas polymer notes are quite strong.

Will old paper notes be completely banned?

The government has completely put an end to the confusion regarding old paper notes. According to the Finance Ministry:

• RBI these new polymer notes Along with existing paper notes Will bring it into circulation in the market.

• There is currently no proposal to completely phase out the old paper currency or to remove it outright. Both types of notes will remain valid together.

What will be the impact on UPI and digital payments?

When the question was raised in Parliament whether the entry of plastic notes would have any adverse impact on the rapidly growing UPI and digital payments in the country, the Finance Ministry clarified the situation. The ministry said that paper/polymer bank notes and digital payment systems are complementary to each other. Both the options will be available in the market for the convenience of the general public and its actual impact can be assessed only after the regular issue of polymer notes.