New Delhi, July 18: India has taken its first formal step towards introducing polymer banknotes, with the Reserve Bank of India’s currency printing subsidiary inviting global Expressions of Interest (EoIs) for the supply of polymer substrate sheets embedded with security features. The move signals progress in the examination of plastic currency, although the Reserve Bank of India has not yet taken a final decision on introducing polymer notes or announced any rollout schedule.
Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL), the RBI’s currency printing arm, has invited eligible domestic and international manufacturers to participate in the procurement process for manufacturing opacified polymer substrate sheets used in banknote printing. Interested bidders have been asked to submit their proposals by August 18.
The invitation marks the first official procurement exercise linked to polymer currency and comes as the central bank continues to evaluate whether polymer banknotes should replace or complement conventional paper currency in India.
The tender, however, does not specify which currency denominations may be printed on polymer substrate or indicate when such notes could be introduced, if approved. The absence of these details underscores that the proposal remains under examination and that no decision has been announced regarding implementation.
If adopted, polymer banknotes would represent a significant change in India’s currency system, where banknotes have traditionally been printed on specialised paper for decades. Polymer notes are manufactured using durable plastic film instead of paper and are generally designed to withstand higher levels of handling. Their longer lifespan compared to conventional paper notes is one of the key factors being considered as part of the evaluation process.
The procurement document also incorporates stringent security conditions for companies seeking to participate in the bidding process. According to reports, prospective suppliers must obtain security clearance from the Government of India before they can be considered eligible.
The tender further requires bidders to isolate any operations in China or Pakistan from the proposed India contract. It also bars suppliers from sourcing raw materials for India’s polymer banknote substrate from either of the two countries and requires them to undertake that India-specific substrate will not be supplied to any third country.
The conditions reflect the emphasis placed on national security and supply chain safeguards in the proposed procurement process for materials that would be used in printing Indian currency.
The development follows remarks made by RBI Governor Sanjay Malhotra in June, when he confirmed that the central bank was examining the feasibility of introducing polymer or plastic currency notes. At the time, he stated that the proposal remained at a preliminary stage and that the RBI was evaluating its advantages and disadvantages before arriving at any decision.
Malhotra had said the Reserve Bank was assessing whether introducing polymer notes would be worthwhile and clarified that no final decision had been taken. He also stated that the RBI would announce its decision publicly once the evaluation process was complete.
The latest procurement exercise indicates that while the central bank continues to study the proposal, preparations are underway to assess the availability of secure polymer substrate for Indian banknotes. The move represents a procedural step in the evaluation process, with the final decision on introducing polymer currency yet to be announced by the Reserve Bank of India.
