Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL), the currency printing arm of the Reserve Bank of India (RBI), has formally invited domestic and international manufacturers to submit Expressions of Interest (EoIs) for the supply of opacified polymer substrate sheets embedded with security features — marking India's first concrete procedural step toward potentially introducing polymer banknotes. Bids are due by 18 August, according to multiple reports.

What the Tender Covers

The EoI calls for the supply of opacified polymer substrate sheets specifically designed for banknote printing. The tender, however, does not specify which denominations are being considered for polymer currency, nor does it lay out a timeline for any eventual rollout, reports indicated.

Polymer notes — manufactured from durable plastic film — are widely recognised for their greater resistance to wear and tear compared with conventional paper currency. Several countries, including Australia, the United Kingdom, and Canada, have already transitioned to polymer notes, citing longer lifespan and enhanced security features.

Stringent National Security Conditions

The tender reportedly prescribes strict national security requirements for prospective suppliers. Bidders are required to obtain security clearance from the Indian government. They must also isolate any operations in China or Pakistan from the India-specific contract, refrain from sourcing raw materials for India's banknote substrate from either country, and provide an undertaking that India-specific substrate will not be supplied to any third country.

These conditions reflect the sensitive nature of currency manufacturing and India's broader push to secure its critical supply chains against geopolitical risk.

Where the RBI Stands

In June 2025, RBI Governor Sanjay Malhotra publicly acknowledged that the central bank is examining a proposal to introduce polymer or plastic currency notes, while stressing that no final decision has been taken. 'We are examining the pros and cons of it and whether it would be worthwhile to implement. It is still at a preliminary stage,' Malhotra said. He added that as soon as any decision is reached, the public would be informed.

The launch of the EoI process by BRBNMPL suggests the examination has now moved into an active vendor-assessment phase, even as the policy decision itself remains pending.

A Potential Historic Shift for Indian Currency

If adopted, polymer banknotes would represent a fundamental departure from India's currency tradition. Indian notes have been printed on specialised cotton-based paper for nearly a century. A transition to polymer would affect the entire currency production ecosystem — from raw material sourcing to printing infrastructure and public handling.

Notably, this is not the first time India has considered polymer notes. The RBI had conducted a limited pilot of one-rupee polymer notes in select cities as far back as 1988, but the experiment was not scaled up. The current initiative, backed by a formal global EoI, signals a more structured and serious evaluation than previous efforts.

What Happens Next

With the EoI deadline set for 18 August, BRBNMPL is expected to assess the technical and security credentials of interested suppliers before any formal tender or procurement process begins. The outcome of this vendor-mapping exercise will likely inform the RBI's final policy deliberations on whether to proceed with polymer currency adoption.