The Reserve Bank of India is revisiting the possibility of introducing polymer banknotes, reviving a proposal first considered over a decade ago, amid rising costs of printing paper currency and the persistent challenge of managing soiled notes.

Sources indicate that the central bank is likely to roll out a pilot project soon, with the issue having figured prominently in discussions at the RBI’s last two board meetings held in Patna and Mumbai. The move comes as billions of worn-out notes are withdrawn from circulation each year, adding to operational and replacement costs.

Polymer notes, already in use in countries such as Australia, Canada, and the UK, are known for their longer lifespan, resistance to moisture, and enhanced security features. RBI officials believe a shift could improve currency durability and reduce long-term expenditure, even though initial production costs are higher than traditional paper notes.

The pilot is expected to test feasibility, public acceptance, and cost efficiency before any nationwide rollout is considered, marking a potential shift in India’s currency management strategy.