India is preparing to test polymer banknotes for the INR 10 and INR 20 denominations, with the Reserve Bank of India (RBI) evaluating BOPP-based polymer substrates as a more durable alternative to conventional paper currency.
The government has approved the RBI’s proposal for field trials involving one billion INR 10 notes and one billion INR 20 notes. The trials will not involve an immediate replacement of existing paper notes. If adopted, polymer banknotes are expected to circulate alongside conventional currency.
Bharatiya Reserve Bank Note Mudran (BRBNMPL), the RBI’s wholly owned subsidiary, has invited bids for 68,000 reams of polymer substrate, divided equally between the two denominations. The tender specifies biaxially oriented polypropylene (BOPP) as the base material, with suitable coatings for printing and ink adhesion. The substrate will also need to support the security features required for banknotes.
Several companies have entered the bidding process. UFlex has submitted a bid in partnership with US-based Spectra Systems, according to PTI. UFlex brings polymer and flexible-film manufacturing capabilities, while Spectra Systems specializes in banknote authentication and security technologies. According to The Indian Express, Australia-based CCL Secure, Vietnam-based Q&T Hi-Tech Polymer and India’s Cosmo First have also submitted bids. Cosmo First has partnered with UK-based banknote specialist De La Rue for its bid. CCL Secure supplies polymer banknote materials and security solutions to central banks, while Q&T Hi-Tech Polymer has developed polymer substrate technology for banknotes and supplied material for Vietnam’s polymer currency.
The proposed substrate is not conventional plastic film. The RBI is seeking an opacified BOPP-based material capable of supporting high-quality banknote printing, ink adhesion and security features, including transparent windows and anti-counterfeiting elements.
The substrates submitted by bidders will undergo technical evaluation covering durability, print performance, security characteristics and suitability for Indian conditions. The procurement process also includes requirements covering supply-chain security, manufacturing arrangements and sources of raw materials.
The focus on INR 10 and INR 20 notes reflects their high frequency of use. These denominations change hands more often and are consequently more susceptible to soiling, damage and early withdrawal from circulation.
Polymer banknotes typically have a longer service life than paper notes. RBI governor Sanjay Malhotra has said polymer notes can last three to four times longer than paper currency, which could reduce the frequency of replacement for heavily circulated denominations.
The RBI is targeting introduction of polymer banknotes from FY28, subject to the outcome of field trials and further evaluation.
For India’s polymer, film and security-technology sectors, the programme could create a specialized application for high-performance substrates. The immediate test, however, will be whether BOPP-based polymer currency can deliver the required combination of durability, printability and security for everyday circulation.