Monetary watchdog, Reserve Bank of India is expected to come up with polymer notes by the end of this fiscal. The polymer notes would be bringing and end to the era of partially torn, mutilated paper currency.

The first notes to hit the economy would be of Rs 10 denomination and others would follow suit.

"We will start with Rs. 10 notes on an experiment basis and then based on it, Rs. 20 and Rs. 50 notes will also be issued," said an RBI source.

Countries like New Zealand, Sri Lanka, Malaysia and Hong Kong already have polymer notes in circulation.

"The RBI could have imported plastic notes from these countries but after some consideration we have decided to produce them internally," the source said.

Plastic notes would also have features preventing the racket of false currency, the source added.