RBI's currency printing arm begins process for polymer banknotes with global EoI
New Delhi, July 18
India has taken its first formal step towards introducing polymer banknotes, with the Reserve Bank of India's currency printing arm inviting global Expressions of Interest for the supply of polymer substrate sheets embedded with security features, as per multiple reports.
Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL) has invited eligible domestic and international manufacturers to submit bids by August 18 for manufacturing opacified polymer substrate sheets for banknote printing.
However, the tender does not specify the denominations proposed for polymer notes or a timeline for their rollout, the reports said.
If adopted, polymer banknotes would mark a major shift for India, where currency has been printed on specialised paper for nearly a century.
Polymer notes -- made from durable plastic films -- are generally more resistant to wear and tear and have a longer lifespan than conventional paper currency.
Reports claim that the tender prescribes stringent national security conditions for prospective suppliers.
Moreover, bidders will be required to obtain security clearance from the government, isolate any operations in China or Pakistan from the India contract, refrain from sourcing raw materials for India's banknote substrate from the two countries and undertake not to supply India-specific substrate to any third country.
Earlier in June, Governor Sanjay Malhotra said that the Reserve Bank of India (RBI) is examining a proposal to introduce polymer or plastic currency notes, although no final decision has been taken yet.
"We are examining the pros and cons of it and whether it would be worthwhile to implement. It is still at a preliminary stage," he said.
Malhotra had said that the proposal remains under consideration and is still at a preliminary stage.
He stated that as far as polymer notes are concerned, the proposal is under consideration, adding that as soon as any decision is taken on it, we will inform you.
— IANS
Reader Comments
Interesting development. I've used polymer notes in Australia and Canada, and they do last much longer. But the real test will be how they handle India's humid climate and the sheer volume of daily transactions. My concern is about the cost - will the government pass it on to taxpayers? Also, what about recycling? Hope they have a proper disposal plan.
I remember how long it took for the ₹500 and ₹2000 notes to be accepted after demonetization. People took months to adjust. Polymer notes will need massive public awareness campaigns, especially in rural areas where even paper notes are handled roughly. But yes, less wear and tear means less government printing cost in the long run. A step in the right direction, but the implementation needs to be very, very smooth.
I'm skeptical, honestly. Polymer notes are great in theory but in practice, they can become slippery when sweaty (and it's India!), and I've heard they can melt or warp in extreme heat. Plus, the security features need to be top-notch to counter counterfeiters. The Chinese exclusion is smart, but let's see if Indian manufacturers can match the quality. Kaam karna hai, bakwas nahi. 😅
This is excellent news! I've always hated how quickly paper notes get dirty and torn. Polymer notes are also more hygienic because they don't absorb moisture and dirt as much. The environmental angle is a concern though - plastic waste is already a huge problem. I hope they make these biodegradable or recyclable. But overall, a modern step for a modern India. Well done, RBI! 👏
V Vikram M