The Reserve Bank of India (RBI) has been planning to introduce polymer or plastic currency notes which is expected to begin with Rs 10 and Rs 20 denominations next year. As per the media reports, the RBI plans to evaluate the performance of polymer banknotes through field trials before taking a decision on a nationwide rollout. If the pilot proves successful, polymer notes could be introduced on a larger scale from 2027.
As a part of the preparatory process, Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL), the RBI’s currency-printing arm, has issued a Global Expression of Interest (EOI) inviting manufacturers to supply polymer substrate sheets embedded with security features for printing Indian banknotes.
The tender seeks approximately 68,000 reams of Biaxially Oriented Polypropylene (BOPP)-based polymer substrate, with 34,000 reams allocated for each of the two denominations proposed for the pilot project.
The polymer sheets are required to incorporate advanced security features, including a transparent window with a portrait, metallic numerals, magnetic pseudo thread, shadow images and iridescent patterns compatible with India’s currency printing presses. The last date for submitting bids is August 18.
According to the tender documents, suppliers must have at least three years of experience providing polymer substrates with security features to central banks or authorised banknote printing organisations. They should also be capable of supplying at least 20,400 reams, equivalent to 30 per cent of the indicative requirement.
Applicants must submit polymer sheet samples for laboratory testing and certify that the material is free from animal tallow and DNA content.
The tender also bars the use of raw materials sourced from China or Pakistan for the project. Companies are required to ensure complete separation between their India-related operations and any activities in those countries. Firms from countries sharing a land border with India must additionally obtain registration from the Department for Promotion of Industry and Internal Trade (DPIIT) Registration Committee before becoming eligible.
Wider rollout depends on field trials
Although reports suggest the pilot will begin with Rs 10 and Rs 20 notes, the RBI has not officially confirmed the denominations.
RBI Governor Sanjay Malhotra had earlier said that the central bank was examining the feasibility and benefits of polymer currency before taking a final decision.
The tender document also notes that the current procurement is only for the pilot phase and that significantly larger orders covering additional denominations may follow if the field trials are successful.
Why polymer banknotes?
Polymer banknotes are regarded as more durable than conventional paper currency and are significantly harder to counterfeit. They also have a longer circulation life, which can lower long-term printing costs and reduce environmental impact.
Australia became the first country to introduce polymer banknotes in 1988, and more than 50 countries now use the technology either fully or partially in their currency systems.