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India Spends Nearly ₹5,000 Crore a Year Just to Print Currency, RBI Pushes Plastic Notes to Cut Costs India's dependence on physical cash continues to come with a massive price tag. According to the Reserve Bank of India's latest annual report, the cost of printing currency notes stood at ₹4,875 crore in the 2025-26 financial year. Although this represents a decline from the previous year's expenditure of ₹6,373 crore, the figure has once again highlighted how expensive it is to keep enough banknotes in circulation across the country. The cost of printing currency is influenced by several factors, including the number of new notes required, replacement of worn-out notes, security features, specialised paper, inks and transportation. Every year, billions of damaged and soiled notes are withdrawn from circulation and replaced with freshly printed ones, adding significantly to the RBI's operating expenses. The issue has gained fresh attention after the government approved field trials for polymer, or plastic, currency notes in ₹10 and ₹20 denominations. Unlike traditional paper notes, polymer notes are expected to last much longer, resist water and dirt, and offer better protection against counterfeiting. Officials believe that although plastic notes are more expensive to produce initially, their longer lifespan could substantially reduce the frequency of reprinting and lower long-term costs. The RBI has clarified that paper currency will continue alongside polymer notes during the trial phase, and there are currently no plans to completely replace India's existing banknotes. However, if the pilot proves successful, polymer currency could gradually reduce the recurring expense of printing replacement notes while improving the durability and security of cash used by millions of Indians every day. Despite the rapid growth of digital payments, cash remains an essential part of India's economy. The latest figures show that maintaining the country's currency supply is not only a logistical challenge but also a significant annual financial commitment. Subscribe to FactTechz In this video, the cash box behind me is Betlex Locking Cash Box With Lock, Safe Box With Key, 11.81lx 9.45wx 3.... If you want to check it out, you can click on the Flipkart product tag affiliate sticker on this video.

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