Will India get plastic currency notes? RBI reviewing polymer banknote proposal, says Governor

The Reserve Bank of India RBI Governor Sanjay Malhotra has said that the proposal to introduce polymer currency notes in India is currently under consideration and remains at a preliminary stage reported the PTISpeaking on the issue Malhotra said the central bank is examining the proposal but no final decision has been taken so farThe RBI Governor stated that discussions regarding polymer banknotes are still in the early stagesHe said the proposal is being evaluated and remains under consideration by the central bankHis remarks come amid growing interest in the possibility of introducing polymerbased currency notes as an alternative to traditional paper notesWhat are polymer currency notesPolymer notes are banknotes made from a special plastic material rather than cottonbased paperSeveral countries including Australia Canada the United Kingdom and New Zealand have adopted polymer currency due to its durability and security featuresThese notes are generally more resistant to wear and tear water damage and counterfeitingPotential benefitsIt is believed that polymer notes can last significantly longer than conventional paper currency reducing replacement costs over timeThey also offer advanced security features making them more difficult to forgeThe polymer notes tend to remain cleaner and can withstand harsh environmental conditions better than paperbased notesRBI projects Indiarsquos GDP growth at 66 per cent for FY27Meanwhile RBI on Friday projected real GDP growth for 202627 at 66 per centmdashwith Q1 at 66 percent Q2 at 63 per cent Q3 at 65 per cent and Q4 at 68 per cent mdash saying that prolonged global supply chain disruptions volatility in global financial markets and weatherrelated shocks continue to pose downside risks to the domestic growth outlook according to the PTIIndiarsquos manufacturing and services PMI suggest that both sectors continue to be resilient and business expectations are still positive said RBI Governor Sanjay Malhotra after the threeday MPC meetingldquoOn the demand side private consumption aided by discretionary spending has remained resilient so far Fixed investment has also maintained its momentum despite cost pressures Merchandise exports recorded strong growth in April 2026 notwithstanding elevated freight and insurance costsrdquo he notedServices exports have also remained robust reflecting sustained demand despite concerns about AIMalhotra while expressing about the economic dynamics said ldquoOverall the economic situation has broadly exhibited resilience and withstood the conflict spillovers although the impact of cost pressures is becoming visiblerdquolsquoInflation remains below targetrsquoHe further stated that CPI inflation remains below the target despite global shocks as the passthrough to domestic prices has been limitedHe highlighted ldquoWhile the baseline projections point towards headline inflation firming up towards the upper tolerance level in Q3 202627 the impact of the supply shock is expected to wane in Q4 onwards The underlying inflation pressures continue to remain benign at this juncturerdquoInflation projections for FY 202627The Central Bank projected CPI inflation for 202627 at 51 per cent with Q1 at 42 per cent Q2 at 51 per cent Q3 at 59 per cent and Q4 at 54 per centldquoCore inflation is projected at 47 per cent for 202627 These forecasts are subject to upside risks due to global supply chain disruptions global commodity price shocks uncertainty about the spatial and temporal distribution of the southwest monsoon and El Nino conditions Adequate stock of food grains and satisfactory reservoir levels however provide some comfortrdquo said Malhotra the news agency reportedwith PTI inputs