RBI’s currency printing arm invites global bids for polymer banknote substrate

India has taken its first formal step towards the possible introduction of polymer banknotes, with the Reserve Bank of India's currency printing subsidiary inviting global Expressions of Interest (EoIs) for the supply of specialised polymer substrate used in printing banknotes.

Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL) has invited eligible domestic and international manufacturers to submit bids by 18 August for the manufacture and supply of opacified polymer substrate sheets embedded with security features.

The tender, however, does not specify which denominations could be printed on polymer substrate or indicate any timeline for the introduction of such notes.

If implemented, polymer banknotes would represent a significant shift in India's currency printing system, which has relied on specialised paper-based notes for decades.

Polymer notes, manufactured using durable plastic film, are generally considered more resistant to wear and tear, have a longer circulation life and incorporate advanced anti-counterfeiting features.

The procurement process also includes stringent national security requirements. Prospective suppliers must obtain security clearance from the Government of India and ensure that any operations in China or Pakistan remain completely segregated from work related to the Indian contract.

In addition, bidders will be prohibited from sourcing raw materials for India's banknote substrate from China or Pakistan and must undertake not to supply India-specific polymer substrate to any third country.

The development follows remarks by Reserve Bank of India Governor Sanjay Malhotra in June that the central bank was examining the feasibility of introducing polymer currency but had not reached a final decision.

"We are examining the pros and cons of it and whether it would be worthwhile to implement. It is still at a preliminary stage," Malhotra had said, adding that the RBI would announce its decision once the evaluation process was complete.

With IANS inputs