India could soon introduce polymer, or plastic, currency notes in Rs 10 and Rs 20 denominations as the Reserve Bank of India (RBI) prepares for a pilot project expected to begin next year. The initiative marks a significant step toward testing more durable and secure banknotes before deciding on a nationwide rollout.

According to official sources, the RBI is planning to start the pilot with Rs 10 and Rs 20 notes. If the trial delivers positive results, the central bank could gradually expand the use of polymer notes across more denominations from 2027.

As part of the preparation, Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL), the RBI’s currency-printing arm, has invited global manufacturers to supply polymer substrate sheets required for printing the new notes.

The tender seeks around 68,000 reams of Biaxially Oriented Polypropylene (BOPP)-based polymer substrate. These sheets will include advanced security features such as transparent windows, metallic numerals, magnetic security threads, shadow images and iridescent patterns designed to strengthen protection against counterfeiting.

The bidding process will remain open until August 18. The RBI has indicated that the current procurement is only for the pilot phase, with larger orders likely if the field trials prove successful.

Strict security guidelines have also been included in the tender. Suppliers must ensure that no raw materials are sourced from China or Pakistan, maintain complete operational separation for India-related work, and avoid deploying personnel previously involved in projects in either country. Companies from nations sharing a land border with India must also obtain approval from the Department for Promotion of Industry and Internal Trade (DPIIT) to qualify.

Only manufacturers with at least three years of experience supplying polymer substrates with embedded security features to central banks or banknote-printing agencies will be eligible. They must also provide polymer sheet samples for laboratory testing and certify that the material is free from animal tallow and DNA content.

Although the RBI has not officially confirmed the denominations for the pilot project, Governor Sanjay Malhotra had earlier stated that the central bank is carefully evaluating the feasibility and advantages of polymer banknotes before making a final decision.

Polymer notes were first introduced by Australia in 1988 and are now used in more than 50 countries. Compared to traditional paper currency, they last longer, are more resistant to wear and tear, offer stronger protection against counterfeiting, and can reduce long-term printing costs while generating less environmental waste.

FAQs

1. Is India introducing plastic currency notes?
The RBI is preparing to test polymer (plastic) currency notes through a pilot project.

2. Which denominations will be introduced first?
The pilot is expected to begin with Rs 10 and Rs 20 notes.

3. When could the pilot start?
The trial is likely to begin next year, subject to RBI’s preparations.

4. Will all currency notes become plastic?
No. A wider rollout will depend on the success of the pilot project.

5. Why is RBI considering polymer notes?
Polymer notes are more durable, secure and resistant to counterfeiting than paper notes.

6. What security features will the new notes have?
They are expected to include transparent windows, metallic numerals, magnetic threads and other advanced security elements.

7. Who will print the polymer notes?
BRBNMPL and Security Printing and Minting Corporation of India (SPMCIL) are expected to handle printing.

8. Are polymer notes already used in other countries?
Yes. More than 50 countries, including Australia, use polymer banknotes.