RBI moves closer to polymer banknotes

The central bank is reviewing the advantages and disadvantages of polymer banknotes
| Photo Credit:
Nisha Dutta

India is moving forward with plans to launch polymer banknotes, as the RBI‑owned BRBNMPL has issued a global expression of interest (EoI) for the production and supply of the polymer material needed to print plastic banknotes.

This comes after the RBI’s Monetary Policy Committee press conference last month, during which Governor Sanjay Malhotra said the idea is being reviewed.

“We will inform you once a decision is reached,” he added, noting that the RBI is weighing the advantages and disadvantages and assessing whether it makes sense to proceed, adding that the matter remains in an early stage.

According to the EoI dated July 17, the required amount is 68,000 reams of BOPP‑based opacified polymer substrate with security features for Indian banknote printing—34,000 reams for each denomination, each ream containing 500 sheets. To qualify, bidders must supply at least 30 % of this total, i.e., no fewer than 20,400 reams, the document states.

Competitive Offers

We are looking for competitive bids from manufacturers and suppliers of security‑featured opacified polymer substrate suitable for banknote printing. The stated quantity in this EoI covers the immediate need. After successful field trials, we plan to procure larger amounts for various denominations, with details to be included in the forthcoming RFP or final tender that will follow this EoI,” the document noted.

Meanwhile, the document also states that bidders must have produced and delivered security‑featured polymer substrate to a central bank, banknote printer, or security‑product printer for at least the three years leading up to 31 March 2026. Furthermore, they must have supplied no less than 30 % of the offered volume to such an entity in any single year within the five‑year period ending 31 March 2026.

Additionally, bidders must demonstrate an annual production capacity of at least 30 % of the volume they propose to supply, supported by a list of equipment and its capacities. The document also requires that the firm’s net worth not be negative as of 31 March 2025 and that it has not declined by more than 30 % year‑on‑year over the last three financial years ending 31 March 2025.

Note Production Statistics

The RBI’s annual report shows that BRBNMPL and the Security Printing and Minting Corporation of India (SPMCIL) together provided 2.81 billion notes. The bank spent more than ₹4,800 crore on note production that fiscal year, while destroying 1.70 billion soiled notes. During that period, the value and volume of banknotes in circulation rose by 11.9 % and 10.5 % respectively.

Published on July 17, 2026