New Delhi, June 12, 2026, 17:31 (IST)
- Some viral social media posts said India will stop using paper currency and switch to plastic notes starting June 30, 2026. PIB Fact Check called the claim false.
- RBI is looking at polymer banknotes, but hasn’t said anything about launching them or swapping out old notes.
- Paper notes are still in use. The RBI has told people to watch for official messages.
Indian officials are challenging rumors about the future of paper banknotes, after social media posts claimed the Reserve Bank of India would phase out paper notes for plastic ones by June 30, 2026. PIB Fact Check, a government fact-checking team, called the reports fake. The RBI has no plans to withdraw paper notes or switch to plastic, the unit said.
Posts and videos claimed that ₹100, ₹50, ₹20, and ₹10 notes might be replaced, which caused confusion. Some people even stopped taking older or shabby notes after the rumour picked up online, Navbharat Times reported. The speculation grew until PIB’s fact-check pushed out a clarification.
ABP Live said a viral claim about a possible change on June 30 stirred users who remembered the 2016 demonetisation. The outlet reported officials said no government announcement had been made on banning paper notes or bringing in plastic notes.
Confusion seems to stem from a different matter: the RBI’s initial look at polymer banknotes. Business Standard said the central bank is only reviewing if polymer notes could fit into India’s existing currency mix. That’s not the same as pulling paper notes or shifting to polymer from June 30, according to the report.
RBI Governor Sanjay Malhotra, speaking after the June 5 Monetary Policy Committee meeting, said the central bank is still looking at polymer banknotes. “Polymer note is under consideration. We are examining the pros and cons. It is at a preliminary stage,” Malhotra told The Times of India. That suggests the plan hasn’t moved past review. The Times of India
Polymer notes are made from synthetic materials, not the usual cotton-based paper. They’re said to last longer, resist moisture and tears, and hold extra security features. Business Standard pointed out that India uses 100% cotton for its current notes.
Cash still plays a big role in India’s economy, even as digital payments pick up. Banknote value in circulation stood at ₹41.23 trillion at the end of March 2026, up 11.9% from a year earlier, according to RBI’s latest annual report, Business Standard reported. The number of notes rose 10.5% to 171.32 billion pieces. ₹500 notes made up 85.5% of total value in circulation.
No order has been confirmed yet to exchange, deposit, or halt taking paper notes over a move to plastic currency. According to Hindustan Times, PIB said people should stick to information from the official RBI website on currency issues and not spread unverified social media posts.
