Reserve Bank of India initiates procurement process for polymer banknote substrates as part of a pilot project aimed at improving note durability, security, and lifecycle performance.
The Reserve Bank of India (RBI) is moving forward with plans to introduce polymer banknotes by initiating a pilot project for ₹10 and ₹20 denominations, marking a significant step toward modernising India’s currency system. The initiative begins with a global procurement process for advanced polymer substrates that will be used to print the trial banknotes.
The RBI’s currency-printing subsidiary, Bharatiya Reserve Bank Note Mudran Pvt. Ltd. (BRBNMPL), has invited global expressions of interest from manufacturers capable of supplying biaxially oriented polypropylene (BOPP)-based polymer substrate sheets embedded with advanced security features. The pilot is expected to evaluate the performance of polymer notes before any wider rollout is considered.
Unlike conventional cotton-based paper currency, polymer banknotes are manufactured using high-performance plastic substrates that offer superior durability. They are more resistant to moisture, dirt, tearing, and everyday wear, allowing them to remain in circulation for significantly longer. Polymer notes also support sophisticated security features such as transparent windows, metallic elements, and embedded security devices, making them more difficult to counterfeit.
For the polymer industry, the initiative represents a notable opportunity for suppliers of specialty polymer films, BOPP substrates, security materials, and precision printing technologies. If the pilot proves successful, demand for advanced polymer materials used in currency production could increase as India considers expanding polymer notes to additional denominations.
Polymer banknotes are already used in more than 50 countries, including Australia, Canada, the United Kingdom, and New Zealand, where they have demonstrated longer service life, improved cleanliness, and lower replacement costs compared to traditional paper notes. India’s pilot programme will assess whether similar benefits can be achieved under local circulation conditions.
The proposed pilot underscores RBI’s focus on enhancing the durability, security, and efficiency of India’s currency system through advanced polymer technology. While no nationwide rollout has been announced, the project could pave the way for a new generation of longer-lasting, more secure banknotes if field trials are successful.