The Reserve Bank of India’s subsidiary, BRBNMPL, has invited global bids to supply specialized polymer substrate for printing banknotes. This move follows ongoing discussions about transitioning to plastic currency, which is known for longer durability compared to traditional cotton-based notes. The initial tender requires 68,000 reams of material, signaling a potential shift in India’s currency production standards.
The Reserve Bank of India (RBI) is taking a concrete step toward potentially introducing polymer-based currency in the country. Bharatiya Reserve Bank Note Mudran (P) Ltd (BRBNMPL), which handles banknote printing for the central bank, has issued a global expression of interest (EoI) for the procurement of specialized polymer substrate. This material, specifically biaxially oriented polypropylene (BOPP), is the foundation for plastic banknotes, which are designed to be more durable and difficult to counterfeit than standard paper notes.
Tender Details and Requirements
The tender calls for an initial supply of 68,000 reams of opacified polymer substrate, with each ream consisting of 500 sheets. The scope of this procurement is divided across different denominations. To ensure quality and reliability, BRBNMPL has set strict eligibility criteria for prospective suppliers. Bidders are required to prove a minimum of three years of experience in supplying similar security-enhanced substrates to central banks or authorized banknote printing organizations as of March 31, 2026.
Furthermore, the tender requires applicants to demonstrate a proven manufacturing capacity and financial stability. Companies must show they have supplied at least 30% of their offered bid quantity in a single year during the past five years. On the financial front, bidders must have a positive net worth as of March 31, 2025, and maintain financial consistency, with no more than a 30% erosion in net worth over the last three years. This financial vetting aims to ensure that selected partners can handle the scale and security standards required for national currency production.
Context of Indian Currency Production
This initiative comes as the RBI manages a massive volume of currency circulation. According to recent annual data, the central bank supplied approximately 2,810 crore currency notes in the previous fiscal year, with printing costs exceeding ₹4,800 crore. Additionally, the replacement of damaged or soiled notes is a continuous logistical task, with 1,700 crore notes destroyed during that same period. Polymer notes are often discussed in central banking circles for their ability to last significantly longer than traditional cotton-fiber paper, which could potentially reduce the recurring costs and environmental impact associated with the frequent destruction and re-printing of soiled notes.
While this EoI is limited to an initial quantity, it acts as a testing phase. Successful field trials could pave the way for a broader rollout across various denominations in future procurement cycles. Investors and market watchers will monitor the tender process to see which global technology providers qualify. The next phase for the RBI will involve evaluating these global bids and determining the operational feasibility of scaling the production of polymer currency across India's vast cash-based economy.