RBI has a green light to launch ‘plastic’ notes from 2027-28 (explainer/notes on what the decision means)

What happened: RBI approval for polymer (“plastic”) banknotes with a 2027-28 target window

The Reserve Bank of India (RBI) has approved the move toward launching polymer-based “plastic” banknotes. The discussed rollout window is 2027-28, and RBI’s final rollout design and execution steps are expected to depend on regulatory approvals and detailed implementation planning.

Background and earlier position: paper-based banknotes in mainstream circulation

India’s banknotes have largely been paper-based in mainstream currency circulation. RBI’s currency management responsibilities include ensuring adequate availability of usable banknotes for circulation and managing replacement when banknotes wear out through public handling and circulation stress.

What changed now: polymer banknotes and the stated rationale

RBI’s approval enables the introduction of polymer-based banknotes (often called “plastic” notes). RBI’s stated rationale focuses on durability and practical currency-management and circulation considerations. RBI also indicates that the exact rollout contours depend on further regulatory approvals and implementation planning.