The Reserve Bank of India (RBI) is reportedly seriously considering the introduction of plastic or polymer currency notes in the country. The proposal was discussed in recent RBI board meetings held in Patna and Mumbai. Officials are exploring solutions to rising printing costs, increasing cash circulation demand, and the short lifespan of traditional paper currency. A pilot project for polymer notes may be launched soon.
The cost of printing currency notes in India varies depending on the denomination and security features used. Lower-value notes are relatively cheaper to print, while higher-security notes cost more due to advanced production requirements.
- Rs 10 note: ~Rs 1.01 per note
- Rs 20 note: ~Rs 1 per note
- Rs 50 note: ~Rs 1.22 per note
- Rs 100 note: ~Rs 1.20 to Rs 1.51 per note
- Rs 200 note: ~Rs 2.93 per note
- Rs 500 note: ~Rs 2.29 per note
- Among paper currency notes, the Rs 200 note is one of the most expensive to produce, with an estimated cost of around Rs 2.93 per note. The Rs 500 note, after recent cost reductions, is estimated to cost around Rs 2.29 per note to print.
- Polymer notes are made using a special polypropylene plastic substrate instead of cotton-based paper. These notes include advanced security features such as transparent windows, holographic elements and multiple protective layers. Due to these features, the production cost of polymer notes is estimated to be 2 to 3 times higher than paper notes. This means if a paper note costs Rs 1 to Rs 3, a polymer note may cost around Rs 2 to Rs 6 per note initially.
- Despite higher initial costs, polymer notes offer long-term advantages. Paper notes in India wear out quickly due to heavy usage, moisture, dirt, folding and general handling. In the financial year 2025 alone, nearly 23.80 billion soiled and damaged notes had to be withdrawn and destroyed.
- Polymer notes are water-resistant, tear-resistant and more durable than paper notes. They last significantly longer and are estimated to have a lifespan 4 to 5 times greater than traditional currency notes. Globally, several countries use polymer currency due to its durability and cost efficiency over time.
