RBI to test polymer banknotes to curb rising printing costs
The Reserve Bank of India (RBI) is gearing up to test polymer banknotes, hoping to tackle rising printing costs and meet the steady demand for cash, even as digital payments grow.
The idea was discussed in recent board meetings after printing expenses jumped from ₹5,101.4 crore in the previous fiscal year to ₹6,372.8 crore in FY25.
Indian polymer notes durable, costlier
Polymer notes are made from a special plastic (BOPP), making them 2.5 to four times tougher than regular paper notes, so they last longer but cost nearly twice as much to make.
Earlier attempts in India didn't work out due to tech issues, but with better ATMs and security features now, RBI thinks it's finally worth a real shot.
If successful, India could join countries like Australia and Canada that already use these durable notes.