{"id":14619,"date":"2026-07-22T14:54:35","date_gmt":"2026-07-22T09:24:35","guid":{"rendered":"https:\/\/www.class24.study\/current-affairs\/?p=14619"},"modified":"2026-07-22T14:54:35","modified_gmt":"2026-07-22T09:24:35","slug":"rbi-polymer-banknotes","status":"publish","type":"post","link":"https:\/\/www.class24.study\/current-affairs\/rbi-polymer-banknotes\/","title":{"rendered":"RBI Invites EoI for Polymer Substrates: India Revives Plastic Currency Initiative"},"content":{"rendered":"<p><span style=\"font-weight: 400\">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&#8217;s (RBI) publishing house\u00a0 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 \u20b910 and \u20b920 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.<\/span><\/p>\n<h2><span style=\"font-weight: 400\">Why is RBI&#8217;s Polymer Currency Initiative in News?<\/span><\/h2>\n<p><span style=\"font-weight: 400\">RBI&#8217;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.<\/span><\/p>\n<h2><span style=\"font-weight: 400\">What are Polymer Banknotes?<\/span><\/h2>\n<p><span style=\"font-weight: 400\">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.<\/span><\/p>\n<h2><span style=\"font-weight: 400\">Why is RBI Reviving the Plastic Currency Initiative?<\/span><\/h2>\n<p><b>Reasons the RBI wants to introduce polymer banknotes:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Extend the life of your currency notes.<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Less frequent note replacement.<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Better against moisture and dirt.<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Strengthen security against counterfeiting.<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Lower long-term currency management costs.<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Enhance note quality for high-circulating denominations.<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Modernise India&#8217;s currency printing technology.<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400\">Advantages of Polymer Banknotes<\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400\"><b>Increased lifespan:<\/b><span style=\"font-weight: 400\"> They last 2-4 times longer than paper notes, which means that they need to be replaced less frequently.<\/span><\/li>\n<li style=\"font-weight: 400\"><b>Improved Security:<\/b><span style=\"font-weight: 400\"> They include more complex protection systems such as unobscured windows, holograms, microprinting, and colour-shifting components that make counterfeiting difficult.<\/span><\/li>\n<li style=\"font-weight: 400\"><b>Water and Moisture Resistant:<\/b><span style=\"font-weight: 400\"> Polymer notes are not absorbent, making them a better choice for humid\/wet conditions.<\/span><\/li>\n<li style=\"font-weight: 400\"><b>Tear Resistant:<\/b><span style=\"font-weight: 400\"> They are made from sturdy material that resists tears, folding damage, and general wear and tear to keep them in circulation longer.<\/span><\/li>\n<li style=\"font-weight: 400\"><b>Cleaner Banknotes:<\/b><span style=\"font-weight: 400\"> The smooth polymer surface resists dirt, oil, and dust.<\/span><\/li>\n<li style=\"font-weight: 400\"><b>Reduced Long-Term Expenditure:<\/b><span style=\"font-weight: 400\"> While production costs are initially higher, their longer service life dramatically decreases printing and replacement costs.<\/span><\/li>\n<li style=\"font-weight: 400\"><b>Eco-friendly:<\/b><span style=\"font-weight: 400\"> Since there are fewer switches, resources consumed, and old polymer notes can frequently be repurposed into plastic goods.<\/span><\/li>\n<li style=\"font-weight: 400\"><b>Improved Public Handling:<\/b><span style=\"font-weight: 400\"> The strong, thin, and flexible construction results in improved circulation (note quality) through increased stiffness.<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400\">RBI&#8217;s Earlier Polymer Currency Proposal<\/span><\/h2>\n<p><span style=\"font-weight: 400\">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.<\/span><b> The Government approved a pilot in 2011<\/b><span style=\"font-weight: 400\">, and the RBI announced polymer notes of \u20b910 denomination to be issued in five cities with diverse weather conditions <\/span><b>(Kochi, Mysuru, Jaipur, Bhubaneswar and Shimla)<\/b><span style=\"font-weight: 400\">. <\/span><\/p>\n<p><span style=\"font-weight: 400\">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.<\/span><\/p>\n<h2><span style=\"font-weight: 400\">PYQs on RBI &amp; Polymer Currency<\/span><\/h2>\n<table>\n<tbody>\n<tr>\n<td><b>Exam &amp; Year<\/b><\/td>\n<td><b>Previous Year Question<\/b><\/td>\n<td><b>Answer<\/b><\/td>\n<\/tr>\n<tr>\n<td><b>RBI Grade B 2023<\/b><\/td>\n<td><b>Which institution in India has the sole authority to issue banknotes (except \u20b91 notes)?<\/b><\/p>\n<p><span style=\"font-weight: 400\">(a) Ministry of Finance<\/span><\/p>\n<p><span style=\"font-weight: 400\">(b) Reserve Bank of India<\/span><\/p>\n<p><span style=\"font-weight: 400\">(c) NABARD<\/span><\/p>\n<p><span style=\"font-weight: 400\">(d) SEBI<\/span><\/td>\n<td><b>(b) Reserve Bank of India<\/b><\/td>\n<\/tr>\n<tr>\n<td><b>IBPS PO 2023<\/b><\/td>\n<td><b>Which Act empowers the Reserve Bank of India to issue currency notes in India?<\/b><\/p>\n<p><span style=\"font-weight: 400\">(a) Banking Regulation Act, 1949<\/span><\/p>\n<p><span style=\"font-weight: 400\">(b) RBI Act, 1934<\/span><\/p>\n<p><span style=\"font-weight: 400\">(c) FEMA, 1999<\/span><\/p>\n<p><span style=\"font-weight: 400\">(d) Coinage Act, 2011<\/span><\/td>\n<td><b>(b) RBI Act, 1934<\/b><\/td>\n<\/tr>\n<tr>\n<td><b>SSC CGL 2022<\/b><\/td>\n<td><b>Who signs the \u20b9500 and \u20b92,000 currency notes issued in India?<\/b><\/p>\n<p><span style=\"font-weight: 400\">(a) Finance Minister<\/span><\/p>\n<p><span style=\"font-weight: 400\">(b) Prime Minister<\/span><\/p>\n<p><span style=\"font-weight: 400\">(c) RBI Governor<\/span><\/p>\n<p><span style=\"font-weight: 400\">(d) President of India<\/span><\/td>\n<td><b>(c) RBI Governor<\/b><\/td>\n<\/tr>\n<tr>\n<td><b>RRB NTPC 2021<\/b><\/td>\n<td><b>The issue and management of currency in India is the responsibility of:<\/b><\/p>\n<p><span style=\"font-weight: 400\">(a) SEBI<\/span><\/p>\n<p><span style=\"font-weight: 400\">(b) RBI<\/span><\/p>\n<p><span style=\"font-weight: 400\">(c) NABARD<\/span><\/p>\n<p><span style=\"font-weight: 400\">(d) SIDBI<\/span><\/td>\n<td><b>(b) RBI<\/b><\/td>\n<\/tr>\n<tr>\n<td><b>SBI PO 2022<\/b><\/td>\n<td><b>Which department of the RBI is responsible for issuing banknotes?<\/b><\/p>\n<p><span style=\"font-weight: 400\">(a) Banking Department<\/span><\/p>\n<p><span style=\"font-weight: 400\">(b) Issue Department<\/span><\/p>\n<p><span style=\"font-weight: 400\">(c) Monetary Policy Department<\/span><\/p>\n<p><span style=\"font-weight: 400\">(d) Financial Stability Unit<\/span><\/td>\n<td><b>(b) Issue Department<\/b><\/td>\n<\/tr>\n<tr>\n<td><b>SSC CHSL 2023<\/b><\/td>\n<td><b>Which material is primarily used to manufacture India&#8217;s current banknotes?<\/b><\/p>\n<p><span style=\"font-weight: 400\">(a) Polymer Plastic<\/span><\/p>\n<p><span style=\"font-weight: 400\">(b) Cotton-based Paper Substrate<\/span><\/p>\n<p><span style=\"font-weight: 400\">(c) Aluminium Foil<\/span><\/p>\n<p><span style=\"font-weight: 400\">(d) Synthetic Rubber<\/span><\/td>\n<td><b>(b) Cotton-based Paper Substrate<\/b><\/td>\n<\/tr>\n<tr>\n<td><b>IBPS Clerk 2024<\/b><\/td>\n<td><b>Polymer banknotes are mainly introduced to:<\/b><\/p>\n<p><span style=\"font-weight: 400\">(a) Increase currency weight<\/span><\/p>\n<p><span style=\"font-weight: 400\">(b) Improve durability and security<\/span><\/p>\n<p><span style=\"font-weight: 400\">(c) Reduce the number of denominations<\/span><\/p>\n<p><span style=\"font-weight: 400\">(d) Replace digital payments<\/span><\/td>\n<td><b>(b) Improve durability and security<\/b><\/td>\n<\/tr>\n<tr>\n<td><b>RBI Assistant 2022<\/b><\/td>\n<td><b>Which of the following is a key advantage of polymer banknotes?<\/b><\/p>\n<p><span style=\"font-weight: 400\">(a) They dissolve in water<\/span><\/p>\n<p><span style=\"font-weight: 400\">(b) They are more durable and difficult to counterfeit<\/span><\/p>\n<p><span style=\"font-weight: 400\">(c) They require no security features<\/span><\/p>\n<p><span style=\"font-weight: 400\">(d) They can only be used once<\/span><\/td>\n<td><b>(b) They are more durable and difficult to counterfeit<\/b><\/td>\n<\/tr>\n<tr>\n<td><b>State PCS (MPPSC) 2023<\/b><\/td>\n<td><b>Australia is known for being the first country to introduce:<\/b><\/p>\n<p><span style=\"font-weight: 400\">(a) Digital Currency<\/span><\/p>\n<p><span style=\"font-weight: 400\">(b) Polymer Banknotes<\/span><\/p>\n<p><span style=\"font-weight: 400\">(c) Gold Coins<\/span><\/p>\n<p><span style=\"font-weight: 400\">(d) Plastic Coins<\/span><\/td>\n<td><b>(b) Polymer Banknotes<\/b><\/td>\n<\/tr>\n<tr>\n<td><b>NABARD Grade A 2021<\/b><\/td>\n<td><b>Which of the following is an expected benefit of introducing polymer currency notes?<\/b><\/p>\n<p><span style=\"font-weight: 400\">(a) Shorter circulation life<\/span><\/p>\n<p><span style=\"font-weight: 400\">(b) Better resistance to wear and counterfeiting<\/span><\/p>\n<p><span style=\"font-weight: 400\">(c) Elimination of all paper currency<\/span><\/p>\n<p><span style=\"font-weight: 400\">(d) Removal of security features<\/span><\/td>\n<td><b>(b) Better resistance to wear and counterfeiting<\/b><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p style=\"text-align: center\"><a href=\"https:\/\/www.class24.study\/current-affairs\/72nd-national-film-awards-2026\/\" target=\"_blank\" rel=\"noopener\">72nd National Film Awards 2026 Announced<\/a><\/p>\n<h2><span style=\"font-weight: 400\">Conclusion<\/span><\/h2>\n<p><span style=\"font-weight: 400\">The Expression of Interest (EoI) for polymer substrates by the Reserve Bank of India (RBI) indicates a re-focus on upgrading India&#8217;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. <\/span><\/p>\n<p><span style=\"font-weight: 400\">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.<\/span><\/p>\n<h2><span style=\"font-weight: 400\">RBI Seeks EoI for Polymer Banknotes (FAQs)<\/span><\/h2>\n<div class=\"cfaq-wrapper\" data-multiple=\"0\"><div class=\"cfaq-item cfaq-open\"><button class=\"cfaq-question\" aria-expanded=\"true\"><span class=\"cfaq-question-text\">1. Why has the RBI invited an Expression of Interest (EoI) for polymer substrates?<\/span><span class=\"cfaq-icon\"><\/span><\/button><div class=\"cfaq-answer\"><div class=\"cfaq-answer-inner\"><div><span style=\"font-size: 12.35px\">The RBI has invited an Expression of Interest (EoI) to identify qualified global suppliers capable of providing security-grade polymer substrates for manufacturing durable and counterfeit-resistant banknotes.<\/span><\/div><\/div><\/div><\/div><div class=\"cfaq-item\"><button class=\"cfaq-question\" aria-expanded=\"false\"><span class=\"cfaq-question-text\">2. What are polymer banknotes?<\/span><span class=\"cfaq-icon\"><\/span><\/button><div class=\"cfaq-answer\" hidden><div class=\"cfaq-answer-inner\"><div><span style=\"font-size: 12.35px\">Polymer banknotes are currency notes made from a special plastic-based polymer substrate instead of traditional cotton paper. They offer greater durability, enhanced security features, and a longer circulation life.<\/span><\/div><\/div><\/div><\/div><div class=\"cfaq-item\"><button class=\"cfaq-question\" aria-expanded=\"false\"><span class=\"cfaq-question-text\">3. Which denominations are likely to be introduced first?<\/span><span class=\"cfaq-icon\"><\/span><\/button><div class=\"cfaq-answer\" hidden><div class=\"cfaq-answer-inner\"><div><span style=\"font-size: 12.35px\">As part of the proposed pilot project, the RBI is expected to initially test \u20b910 and \u20b920 polymer banknotes, as these denominations experience the highest frequency of circulation and wear.<\/span><\/div><\/div><\/div><\/div><div class=\"cfaq-item\"><button class=\"cfaq-question\" aria-expanded=\"false\"><span class=\"cfaq-question-text\">4. What are the major advantages of polymer currency?<\/span><span class=\"cfaq-icon\"><\/span><\/button><div class=\"cfaq-answer\" hidden><div class=\"cfaq-answer-inner\"><div><span style=\"font-size: 12.35px\">Polymer banknotes are more durable, waterproof, tear-resistant, cleaner, and more secure than conventional paper notes. They also reduce replacement frequency and improve protection against counterfeiting.<\/span><\/div><\/div><\/div><\/div><div class=\"cfaq-item\"><button class=\"cfaq-question\" aria-expanded=\"false\"><span class=\"cfaq-question-text\">5. Why was India&#039;s earlier polymer currency proposal not implemented?<\/span><span class=\"cfaq-icon\"><\/span><\/button><div class=\"cfaq-answer\" hidden><div class=\"cfaq-answer-inner\"><div><span style=\"font-size: 12.35px\">Although the RBI proposed polymer banknotes in 2010\u201311, the initiative was deferred due to factors such as high production costs, dependence on imported substrates, and technical infrastructure requirements.<\/span><\/div><\/div><\/div><\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>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&#8217;s (RBI) publishing house\u00a0 Bharatiya Reserve Bank Note Mudran Private Limited [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":14620,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[14],"tags":[],"class_list":["post-14619","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.class24.study\/current-affairs\/wp-json\/wp\/v2\/posts\/14619","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.class24.study\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.class24.study\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.class24.study\/current-affairs\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.class24.study\/current-affairs\/wp-json\/wp\/v2\/comments?post=14619"}],"version-history":[{"count":1,"href":"https:\/\/www.class24.study\/current-affairs\/wp-json\/wp\/v2\/posts\/14619\/revisions"}],"predecessor-version":[{"id":14621,"href":"https:\/\/www.class24.study\/current-affairs\/wp-json\/wp\/v2\/posts\/14619\/revisions\/14621"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.class24.study\/current-affairs\/wp-json\/wp\/v2\/media\/14620"}],"wp:attachment":[{"href":"https:\/\/www.class24.study\/current-affairs\/wp-json\/wp\/v2\/media?parent=14619"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.class24.study\/current-affairs\/wp-json\/wp\/v2\/categories?post=14619"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.class24.study\/current-affairs\/wp-json\/wp\/v2\/tags?post=14619"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}