India could begin issuing polymer, or plastic, currency notes in Rs 10 and Rs 20 denominations from next year, with the Reserve Bank of India (RBI) initiating preparations for a pilot rollout by inviting global suppliers to participate in the project. The move marks the first formal step towards testing polymer banknotes in the country.

According to official sources cited by ANI and Dainik Bhaskar, the RBI plans to begin the pilot with Rs 10 and Rs 20 notes. A decision on expanding the rollout will depend on the outcome of field trials, with a wider introduction likely from 2027 if the tests are successful.

RBI Floats Global Tender

Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL), the RBI’s currency-printing subsidiary, has issued a Global Expression of Interest (EOI) inviting manufacturers to supply polymer substrate sheets with embedded security features for printing Indian banknotes.

According to ANI, the tender seeks an indicative quantity of 68,000 reams of Biaxially Oriented Polypropylene (BOPP)-based polymer substrate, with 34,000 reams allocated for each of the two denominations. Each ream consists of 500 sheets.

The substrate is required to incorporate multiple security features, including a clear window with a portrait, a metallic numeral, a magnetic pseudo thread, a shadow image and an iridescent pattern. The material must be compatible with printing at BRBNMPL and Security Printing and Minting Corporation of India (SPMCIL) presses.

The Indian Express reported that the global tender marks the beginning of the RBI’s planned field trial of polymer currency notes. The last date for submitting bids is August 18.

The tender document states that the current procurement is intended only to meet the immediate requirement. Larger orders covering additional denominations may be placed if the pilot proves successful, according to the report.

Strict Eligibility and Security Conditions

The procurement process includes stringent security requirements for participating companies.

According to ANI and the Indian Express, bidders must ensure that any operations in China or Pakistan are completely segregated from work related to the Indian project. They must also not source raw materials from either country or deploy personnel who have previously worked there for the project.

Companies from countries sharing a land border with India must be registered with the Department for Promotion of Industry and Internal Trade (DPIIT) Registration Committee to qualify.

Eligible bidders must have supplied polymer banknote substrates with security features to a central bank or banknote printing organisation for at least three years. They must also demonstrate the capacity to supply a minimum of 20,400 reams, equivalent to 30 per cent of the indicative requirement.

In addition, suppliers are required to provide polymer sheet samples for laboratory testing and certify that the material is free from animal tallow and DNA content.

RBI Yet to Confirm Denominations

The RBI has not officially confirmed that the pilot project will use Rs 10 and Rs 20 notes.

However, RBI Governor Sanjay Malhotra said after the June monetary policy meeting that the central bank was examining a proposal to introduce polymer banknotes and was assessing their advantages and feasibility before taking a final decision, according to the Indian Express.

Polymer Notes Used in Over 50 Countries

Polymer banknotes were first introduced by Australia in 1988 and are now in circulation in more than 50 countries.

Compared with conventional paper currency, polymer notes are generally more durable, have a longer lifespan and offer greater resistance to counterfeiting. They are also expected to reduce long-term printing costs and lower the environmental impact of currency production.

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