In a significant policy shift that could reshape India’s monetary ecosystem, the Reserve Bank of India’s (RBI) currency printing arm has taken its first formal step toward introducing polymer banknotes. The Bharatiya Reserve Bank Note Mudran (BRBNMPL) has officially invited global Expressions of Interest (EoIs) for the supply of opacified polymer substrate sheets embedded with security features, marking a potential departure from traditional paper currency used for nearly a century. Domestic and international manufacturers have been given until August 18 to submit their bids.
The tender outlines an initial requirement of 68,000 reams, divided equally between two unverified denominations, though procurement volumes could scale up following successful field trials. Given the critical nature of the project, the central bank has enforced stringent national security protocols. Prospective global suppliers must secure formal clearance from the Indian government, completely isolate any operations in China or Pakistan from the Indian contract, and commit to not sourcing raw materials from those nations. Furthermore, bidders must possess at least three years of experience supplying polymer substrates to other central banks.
The development follows recent statements by RBI Governor Sanjay Malhotra, who confirmed that the central bank is actively exploring the transition due to the superior durability and wear resistance of plastic-molded film. Interestingly, this exploration comes at a time when the RBI’s annual currency printing expenditure dropped by nearly 25 percent to ₹4,875 crore. Despite the dip in printing costs, the value of cash in circulation surged 12 percent year-on-year to hit ₹41.23 trillion, with the ₹500 note remaining the absolute dominant denomination, accounting for 86 percent of the total value of currency in circulation.
