Sanjay Malhotra outlines RBI’s polymer note strategy for next fiscal year

Governor Sanjay Malhotra highlighted that polymer banknotes offer a longer lifespan compared with traditional paper notes, especially for low‑denomination notes that circulate heavily and deteriorate quickly. By shifting to polymer, the RBI expects to lower the cost associated with frequent note replacement. The pilot will also examine how the new substrate behaves across different regions of India, from humid coastal zones to dry interior states. Security enhancements built into polymer notes could further curb counterfeiting, a persistent challenge for Indian currency.