RBI Invites EoI for Polymer Substrates: India Revives Plastic Currency Initiative

The Reserve Bank of India (RBI) has embarked on a significant move for commercialisation of the polymer (plastic) banknotes by inviting a worldwide Expression of Interest (EoI) for supply of security-grade polymer substrate sheets. This initiative, which is spearheaded through the Reserve Bank of India’s (RBI) publishing house  Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL), revives a proposal that was first presented more than 10 years ago. Initially, the pilot is expected to cover ₹10 and ₹20 denomination notes that are susceptible to wear-and-tear because of their frequent circulation. Unlike paper notes, polymer banknotes are predicted to last much longer and have additional security features that make counterfeiting more challenging.

Why is RBI’s Polymer Currency Initiative in News?

RBI’s currency printing unit, BRBNMPL, has issued an Expression of Interest (EoI) to make and supply polymer substrate sheets with additional security features in a move towards developing different supplier countries. If the procurement and testing go smoothly, India will likely advance to field trials of polymer banknotes starting with low-denomination notes.

What are Polymer Banknotes?

Polymer banknotes are currency notes utilised in a polymer substrate made from an advanced security-grade plastic instead of conventional cotton-based paper. They also include more advanced state-of-the-art anti-counterfeiting technologies along with a moisture-, dirt-, and folding-resistant durability built into common use. Polymer notes are also cleaner for longer, with a lifecycle that outlasts paper.

Why is RBI Reviving the Plastic Currency Initiative?

Reasons the RBI wants to introduce polymer banknotes:

• Extend the life of your currency notes.
• Less frequent note replacement.
• Better against moisture and dirt.
• Strengthen security against counterfeiting.
• Lower long-term currency management costs.
• Enhance note quality for high-circulating denominations.
• Modernise India’s currency printing technology.

Advantages of Polymer Banknotes

• Increased lifespan: They last 2-4 times longer than paper notes, which means that they need to be replaced less frequently.
• Improved Security: They include more complex protection systems such as unobscured windows, holograms, microprinting, and colour-shifting components that make counterfeiting difficult.
• Water and Moisture Resistant: Polymer notes are not absorbent, making them a better choice for humid/wet conditions.
• Tear Resistant: They are made from sturdy material that resists tears, folding damage, and general wear and tear to keep them in circulation longer.
• Cleaner Banknotes: The smooth polymer surface resists dirt, oil, and dust.
• Reduced Long-Term Expenditure: While production costs are initially higher, their longer service life dramatically decreases printing and replacement costs.
• Eco-friendly: Since there are fewer switches, resources consumed, and old polymer notes can frequently be repurposed into plastic goods.
• Improved Public Handling: The strong, thin, and flexible construction results in improved circulation (note quality) through increased stiffness.

RBI’s Earlier Polymer Currency Proposal

India has not recently looked at polymer (plastic) banknotes. In 2010, the Reserve Bank of India (RBI) suggested that polymer currency should be launched to increase banknote longevity and reduce counterfeiting. The Government approved a pilot in 2011, and the RBI announced polymer notes of ₹10 denomination to be issued in five cities with diverse weather conditions (Kochi, Mysuru, Jaipur, Bhubaneswar and Shimla).

The purpose was to test how the notes performed in different environmental conditions. The project faced high production cost, reliance on imported polymer substrates and scarcity of infrastructure, leading to it being shelved. Then, in 2026, RBI was back to work with a global Expression of Interest (EoI) for buying security-grade polymer substrates, possibly heralding another attempt to modernise the Indian currency system with long-lasting and counterfeiting-proof notes.

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Conclusion

The Expression of Interest (EoI) for polymer substrates by the Reserve Bank of India (RBI) indicates a re-focus on upgrading India’s note-printing logistics. The central bank analyses the use of polymer notes to replace traditional paper currency with more durable, safe and counterfeit-resistant notes. If successful, it will make replacing notes, in the medium- to long-term at least, less frequent and cheaper for the taxpayer as well as lower the number of unsatisfactory-quality banknotes entering circulation.

Most of the world already has polymer currency, so India reinitiating its pursuit of it (after a half-hearted attempt last time) makes sense for fitting the bill with a trend and strengthening currency security against forgery and decreased lifespan, as well as improving operational efficiency and bringing us toward newer global banknote technology best practices.

RBI Seeks EoI for Polymer Banknotes (FAQs)