Is plastic money coming? Centre clears ₹10, ₹20 Polymer note trials

New Delhi: The Centre has approved the Reserve Bank of India's (RBI) proposal to introduce one billion ₹10 polymer banknotes and one billion ₹20 polymer banknotes for field trials, marking a key step towards testing more durable currency in India.

Minister of State for Finance Pankaj Chaudhary informed the Lok Sabha on Monday that the proposal, submitted by the RBI under Section 25 of the Reserve Bank of India Act, 1934, has received government approval.

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The polymer notes will initially be issued as part of field trials. Regular circulation of the new banknotes will depend on the successful completion of these trials.

According to the minister, the RBI has cited international studies showing that polymer banknotes have a significantly longer lifespan than conventional paper currency.

Chaudhary also clarified that the move is still in its early stages and that its impact on digital payments can only be assessed after the notes are introduced into regular circulation.

"As per RBI, Polymer banknotes are proposed to be issued along with paper substrate-based banknotes and that there is no proposal to replace paper currency with polymer substrate-based banknotes," he said.

He further noted that physical banknotes and digital payment systems are complementary modes of payment available to the public.

In a separate reply, Chaudhary said 5,17,657 guarantees had been issued to beneficiary enterprises under the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 as of July 21, 2026. The total guarantee amount stood at ₹1,90,523.78 crore. The ECLGS 5.0 scheme was launched on May 8, 2026.

No proposal for one-time farm loan waiver

Responding to another question in the Lok Sabha, Chaudhary said the Union government is not considering a one-time waiver of loans for small and marginal farmers.

To assist distressed borrowers, he said, the RBI's Master Direction on Resolution of Stressed Assets, 2025 allows lenders to restructure loans based on their board-approved policies and regulatory guidelines.

"No proposal for one-time waiver of loans of small and marginal farmers is currently under consideration with the Union government," he said while replying to a question on whether the Centre planned to introduce a one-time loan waiver or restructuring package for small and marginal farmers.