The Reserve Bank of India (RBI) is set to roll out polymer banknotes, with Rs 10 and Rs 20 notes likely to be the first denominations to be introduced as part of a pilot project.
The central bank has floated a global Expression of Interest (EoI) for the supply of polymer substrate sheets embedded with security features for printing polymer banknotes. At present, all Indian banknotes are printed on high-quality cotton-based paper.
Once the material is sourced, the RBI plans to conduct a pilot rollout of polymer currency notes, according to a central bank source. The pilot is likely to begin with Rs 10 and Rs 20 denomination notes.
The EoI, issued on Friday by Bharatiya Reserve Bank Note Mudran Private Ltd (BRBNMPL), the RBI's currency-printing arm, seeks an indicative quantity of 68,000 reams of biaxially oriented polypropylene (BOPP)-based polymer substrate—34,000 reams each for two denominations—with each ream comprising 500 sheets.
According to the EoI document, the polymer substrate must incorporate advanced security features, including a clear window with a portrait, metallic numeral, magnetic pseudo thread, shadow image and iridescent patterns. The material should be compatible with printing facilities operated by BRBNMPL and the government-owned Security Printing and Minting Corporation of India Ltd (SPMCIL).
Banknotes in India are currently printed at the presses operated by these two entities. BRBNMPL, headquartered in Bengaluru, operates currency printing presses at Mysuru and Salboni in West Bengal. SPMCIL, based in New Delhi, operates nine production units comprising mints, security presses, currency note presses and a security paper mill.
Its mints are located in Mumbai, Kolkata, Hyderabad and Noida, while its currency and security printing presses are located in Nashik, Dewas and Hyderabad. The corporation also operates a security paper mill at Narmadapuram in Madhya Pradesh.
According to sources, the RBI intends to begin the pilot rollout of polymer banknotes soon as part of its plans to introduce next-generation currency notes. Depending on the outcome of the pilot, a full-scale rollout could begin in 2027.
The EoI has set August 18 as the deadline for bid submissions and seeks technology partners with at least three years of experience supplying polymer substrates to central banks.
Polymer banknotes are significantly more durable than conventional paper currency, lasting four to five times longer in circulation. They are also more resistant to moisture, dirt and wear and tear, making them more cost-effective over time by reducing the costs associated with printing and replacing soiled notes.
Several countries, including Australia, the United Kingdom, Canada and New Zealand, have already adopted polymer banknotes.
The EoI also includes stringent national security provisions. Bidders must ensure that their operations in China or Pakistan are completely firewalled from any India-related business and must not source raw materials from either country. They are also prohibited from engaging personnel who have worked in China or Pakistan in any capacity for the proposed contract.