New Delhi: India could soon introduce polymer, or plastic, currency notes in Rs 10 and Rs 20 denominations, with the Reserve Bank of India (RBI) moving ahead with preparations for a pilot rollout. The central bank has initiated the first phase of the project by inviting global manufacturers to supply specialised polymer substrates embedded with advanced security features.

According to official sources, the pilot project is expected to begin with Rs 10 and Rs 20 banknotes. Based on the outcome of field trials, the RBI will decide whether to expand the programme, with a wider rollout likely from 2027 if the pilot proves successful.

Global tender issued for polymer substrates

As part of the project, Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL), the RBI’s currency printing subsidiary, has floated a Global Expression of Interest (EOI) inviting international manufacturers to supply opacified polymer substrate sheets for printing Indian currency notes.

The tender seeks an indicative supply of 68,000 reams of Biaxially Oriented Polypropylene (BOPP)-based polymer substrate, with 34,000 reams each earmarked for two denominations.

Each ream will consist of 500 sheets, which will be used for printing the trial banknotes at BRBNMPL and Security Printing and Minting Corporation of India (SPMCIL) facilities.

Advanced security features proposed

The polymer substrate will incorporate several advanced security features designed to make counterfeit reproduction significantly more difficult.

According to the tender, the banknotes are expected to include a transparent window with a portrait, metallic numeral, magnetic pseudo thread, shadow image and iridescent pattern.

These security elements are intended to improve the authenticity and durability of the currency while enhancing public confidence in the new notes.

Strict eligibility conditions for suppliers

The procurement process includes stringent eligibility and security requirements for participating companies.

Suppliers must ensure that operations in China or Pakistan remain completely separate from India-related work. They are also prohibited from sourcing raw materials from either country or deploying personnel who have previously worked on similar projects in China or Pakistan.

Additionally, companies from countries sharing a land border with India must be registered with the Department for Promotion of Industry and Internal Trade (DPIIT) Registration Committee to qualify for participation.

Eligible bidders must have at least three years of experience supplying polymer substrates with security features to a central bank or a banknote printing organisation.

Applicants must also demonstrate the capacity to supply at least 20,400 reams, equivalent to 30 per cent of the projected requirement, and provide polymer sheet samples for laboratory testing. The material must also be certified as being free from animal tallow and DNA content.

The last date for submission of bids is August 18.

Pilot to determine future rollout

Although the RBI has not officially confirmed the denominations for the pilot project, RBI Governor Sanjay Malhotra had stated after the June monetary policy meeting that the proposal for polymer banknotes was under consideration.

He said the central bank was examining the feasibility and advantages of introducing polymer currency before taking a final decision.

The tender document also states that the present procurement is only for the pilot phase and that larger orders covering additional denominations may be placed if the field trials are successful.

Polymer notes used in over 50 countries

Polymer banknotes were first introduced by Australia in 1988 and are now used in more than 50 countries around the world.

Compared to conventional paper currency, polymer notes are more durable, last longer in circulation and are significantly more resistant to counterfeiting. Their longer lifespan can also reduce printing costs over time while lowering environmental impact due to less frequent replacement.

If the pilot project succeeds, India could join the growing list of countries adopting polymer banknotes as part of efforts to modernise its currency system and strengthen security against counterfeiting.