Plastic currency likely to be introduced next year in India
New Delhi, July 19: Over 10 years after demonetisation, India is likely to see introduction of currency notes in polymer, or plastic.
The Reserve Bank of India (RBI) is reportedly preparing to roll out currency notes of Rs 10 and Rs 20 denominations in polymer or plastic form from next year.
According to some media reports quoting “official sources”, the RBI is expected to introduce plastic currency of Rs 10 and Rs 20 denominations as a pilot project.
The decision on a wider rollout will depend on the outcome of the field trials, and if the testing is successful, a full-scale introduction could begin in 2027, the reports said.
As part of the process, Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL), the RBI’s currency-printing subsidiary, has floated a Global Expression of Interest (EOI) inviting manufacturers worldwide to supply opacified polymer substrate sheets embedded with security features for printing Indian banknotes.
The EOI seeks an indicative quantity of 68,000 reams of Biaxially Oriented Polypropylene (BOPP)-based polymer substrate, with 34,000 reams each earmarked for two denominations. Each ream comprises 500 sheets.
The substrate must include advanced security features such as a clear window with portrait, metallic numeral, magnetic pseudo thread, shadow image and iridescent pattern, suitable for printing at BRBNMPL and Security Printing and Minting Corporation of India (SPMCIL) presses.
The last date for submission of bids is August 18.
The global tender marks the start of the RBI’s planned trial of polymer currency notes.
The tender document states that the current procurement is meant only for the immediate requirement and that larger orders covering more denominations are likely if the field trials prove successful.
Eligible bidders must have at least three years of experience supplying polymer substrates with security features to a central bank or banknote printing organisation and must be capable of supplying at least 20,400 reams, or 30 per cent of the indicative requirement.
Applicants are also required to submit polymer sheet samples for laboratory testing, along with certifications that the material is free of animal tallow and DNA content.
The RBI has not officially announced the denominations for the pilot project.
However, RBI Governor Sanjay Malhotra had said after the June monetary policy meeting that a proposal on polymer banknotes was under consideration and that the central bank was examining the advantages and feasibility before taking a final decision.
