Is RBI Switching to Plastic Currency? Global Tender Signals Polymer Note Trial
The RBI has taken a step toward introducing polymer (plastic) currency notes by floating a global tender for polymer sheets to conduct field trials. The trial will cover two denominations, though no final decision has been made on a nationwide rollout. RBI says polymer notes are still under evaluation and will be considered further after successful field testing.
The Reserve Bank of India (RBI) has moved a step closer to introducing polymer, or plastic, currency notes by initiating the procurement process for materials needed to conduct field trials. On Friday, the Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL) floated a global tender seeking polymer sheets that will be used to print trial banknotes.
The development marks the first concrete step after RBI Governor Sanjay Malhotra said in June that the central bank was examining the feasibility of introducing polymer notes. While no final decision has been taken, the latest tender indicates that the RBI is preparing to test the technology before considering wider adoption. Is RBI Replacing Paper Notes With Plastic Currency by June 30? PIB Fact Check Debunks Fake Claim.
RBI Floats Global Tender for Polymer Sheets
BRBNMPL, the RBI's wholly owned subsidiary responsible for designing and printing banknotes, has invited bids for 68,000 reams of Biaxially Oriented Polypropylene (BOPP)-based opacified polymer substrate with built-in security features.
According to the tender, 34,000 reams will be used for printing one denomination, indicating that the trial will cover two denominations of currency notes. The last date for submitting bids is August 18. The RBI has not officially disclosed which denominations will be included in the trial. What Is Retail Rupee? Key Features of RBI’s Digital Cash System.
Trial Could Lead to Wider Rollout
The tender document states that the current procurement is only for immediate trial requirements. "The indicative requirement in this EOI is meant for immediate requirement. Once our field trials is successful, we intend to go for procurement of larger quantity of substrate across different denominations and the same is likely to be shared in the upcoming RFP/Final tender or in future tenders which shall follow this EOI (Expression of Interest)."
If the field trials are successful, the RBI could consider procuring polymer substrates for multiple currency denominations in the future.
Strict Security Conditions for Suppliers
The tender includes stringent eligibility conditions for participating companies. Suppliers must ensure that any operations in China or Pakistan are completely separated from their India-related activities. In addition, raw materials used for India's polymer sheets cannot be sourced from either country.
The document also requires bidders to declare that no employees who have previously worked or been posted in China or Pakistan, and no Chinese or Pakistani nationals or persons of Chinese or Pakistani origin, will be involved in the project.
RBI Still Evaluating Polymer Notes
The tender follows comments made by RBI Governor Sanjay Malhotra after the Monetary Policy Committee meeting on June 5, when he said the proposal remained under consideration. "We are examining the pros and cons of it and whether, you know, it will be worthwhile to do it. It is still at a preliminary stage." The RBI has not yet announced any timeline for introducing polymer notes into circulation.
Why Polymer Notes Are Being Considered
Polymer banknotes were first introduced by Australia in 1988 and are now used in more than 50 countries.
Compared with conventional paper notes, polymer currency offers several advantages:
- Lasts two to six times longer than paper notes
- More resistant to dirt and moisture
- Easier to clean
- Can be recycled
- Includes advanced security features that make counterfeiting more difficult
According to banknote manufacturer De La Rue, countries using polymer notes have generally seen lower counterfeit rates because fake notes are more commonly produced on paper.
India's Currency Printing and Counterfeit Data
According to RBI data, more than 17,000 crore banknotes, valued at around INR 41 lakh crore, were in circulation as of March 31, 2026.
During 2025-26, the RBI spent INR 4,875 crore on printing currency and supplied 2,810 crore banknotes.
The number of counterfeit notes detected also increased to 2.3 lakh during the year, compared with 2.17 lakh in 2024-25.
The proposed polymer note trial is expected to help the RBI assess whether the technology can improve durability, reduce replacement costs and strengthen protection against counterfeiting before any decision on nationwide adoption is taken.
(The above story first appeared on LatestLY on Jul 17, 2026 10:29 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).
