The RBI's note-printing subsidiary has floated a global tender to procure polymer sheets for trial production of currency notes.
The trial is expected to cover two denominations, with larger procurement planned if field tests are successful.
Polymer notes last longer than paper notes and are considered more durable, cleaner and harder to counterfeit.
India May Soon Test Polymer Notes as RBI Floats Global Tender
The central bank's note-printing arm has invited global bids for polymer sheets as India prepares to test currency notes made from a longer-lasting and more secure material
Summary
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The Reserve Bank of India (RBI) has taken a step towards testing polymer currency notes, with its wholly owned subsidiary, Bharatiya Reserve Bank Note Mudran Pvt. Ltd. (BRBNMPL), inviting global bids to procure polymer sheets used for printing banknotes, according to a report by The Indian Express.
The polymer substrate will be supplied to both BRBNMPL and the Security Printing and Minting Corporation of India (SPMCIL), which print India's currency notes.
The tender indicates that the RBI plans to conduct field trials using polymer-based notes before deciding whether to adopt the material on a larger scale.
Trial to Cover Two Denominations
According to the report, BRBNMPL has sought bids for 68,000 reams of biaxially oriented polypropylene-based opacified polymer substrate with built-in security features. One ream contains 500 sheets.
The tender document states that 34,000 reams will be used for printing one denomination of currency notes, suggesting that the pilot programme will cover two denominations.
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While the tender does not specify the denominations, official sources cited by ANI said the RBI is likely to begin the pilot with ₹10 and ₹20 notes. According to a Dainik Bhaskar report, a wider rollout will depend on the outcome of the field trials, and if the pilot is successful, polymer notes could be introduced on a larger scale from 2027.
It also notes that the current procurement is meant only for the initial requirement. If the field trials are successful, the RBI plans to procure larger quantities of polymer substrate for additional denominations through future tenders.
Strict Procurement Rules
The tender includes strict conditions for participating companies. According to the document, bidders must ensure that any operations in China or Pakistan are adequately separated from their Indian operations. It also specifies that no raw materials used to manufacture India-specific polymer sheets should be sourced from either country.
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In addition, bidders must declare that no employees who have previously worked or been posted in China or Pakistan will be involved in the project. Pakistani and Chinese nationals, or people of Pakistani or Chinese origin, are also barred from participating in the procurement process.
Why Polymer Notes?
The development comes after RBI Governor Sanjay Malhotra said at the post-monetary policy press conference on June 5 that a proposal to introduce polymer currency notes was under consideration, although no final decision had been taken.
Polymer banknotes, first introduced by Australia in 1988, are now used in more than 50 countries. They typically last two to six times longer than paper notes, making them more durable and reducing replacement costs.
They are also considered cleaner, easier to recycle and more resistant to counterfeiting because of their advanced security features. According to the report, counterfeit notes detected in India rose to around 2.3 lakh pieces in FY26, compared with 2.17 lakh in the previous year.
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The RBI spent ₹4,875 crore on printing currency notes during FY26. As of March 31, 2026, more than 17,000 crore currency notes worth around ₹41 lakh crore were in circulation, while 2,810 crore new notes were supplied during the year.