New Delhi: India has taken its first formal step towards introducing polymer banknotes, with the Reserve Bank of India’s (RBI) currency printing arm inviting global Expressions of Interest (EoIs) for the supply of specialised polymer substrate used in banknote printing.
The tender has been issued by Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL), which has invited eligible domestic and international manufacturers to submit bids by August 18.
First step towards plastic currency notes
The tender seeks suppliers for opacified polymer substrate sheets embedded with advanced security features, which are used to print durable polymer banknotes.
However, the document does not specify which denominations will be printed on polymer notes or provide any timeline for their introduction.
If implemented, polymer banknotes would mark a significant shift from India’s traditional paper-based currency system, which has been in use for decades.
Polymer notes are more durable
Polymer banknotes are made from special plastic films and are known for their longer lifespan, greater resistance to dirt, moisture and wear, and improved security features compared to conventional paper notes.
Several countries, including Australia, Canada, the United Kingdom, New Zealand and Singapore, already use polymer currency because of its durability and enhanced protection against counterfeiting.
Strict security norms for suppliers
The tender lays down stringent national security conditions for companies participating in the bidding process.
Prospective suppliers must obtain security clearance from the Government of India, ensure that operations related to the Indian contract are isolated from any business in China or Pakistan, avoid sourcing raw materials for India’s banknote substrate from these countries, and undertake not to supply India-specific substrate to any third country.
Earlier in June, RBI Governor Sanjay Malhotra said the central bank was examining the feasibility of introducing polymer currency notes and that the proposal remained at a preliminary stage, with no final decision taken so far.