RBI May Introduce Rs 10 and Rs 20 Polymer Currency Notes From 2027; Pilot Likely Next Year

The Reserve Bank of India (RBI) has taken a significant step towards introducing polymer (plastic) currency notes by initiating preparations for a pilot project that could begin next year.

According to official sources, the trial is expected to start with Rs 10 and Rs 20 denominations. If the pilot proves successful, India could begin a wider rollout of polymer banknotes from 2027.

To support the initiative, the RBI's currency-printing arm has invited global manufacturers to supply specialized polymer substrates with advanced security features.

Global Tender Issued for Polymer Note Material

The RBI's wholly owned subsidiary, Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL), has floated a Global Expression of Interest (EOI) inviting international companies to supply Biaxially Oriented Polypropylene (BOPP)-based polymer substrate sheets.

The tender seeks approximately 68,000 reams of polymer substrate, with 34,000 reams each intended for two denominations, widely expected to be Rs 10 and Rs 20.

Each ream will contain 500 sheets, equipped with advanced security elements suitable for printing at BRBNMPL and Security Printing and Minting Corporation of India (SPMCIL) facilities.

Advanced Security Features Planned

The proposed polymer notes are expected to include several modern anti-counterfeiting features, including:

• Transparent security window with portrait
• Metallic denomination numeral
• Magnetic pseudo security thread
• Shadow image
• Iridescent security patterns

These features are designed to make counterfeiting significantly more difficult while improving the durability of Indian banknotes.

Strict Procurement Conditions

The RBI has laid down stringent eligibility conditions for participating suppliers.

According to the tender:

• Companies must completely segregate India-related operations from any activities in China or Pakistan.
• No raw materials may be sourced from China or Pakistan.
• Personnel previously associated with India-related projects in those countries cannot be deployed.
• Companies from countries sharing a land border with India must obtain approval from the Department for Promotion of Industry and Internal Trade (DPIIT) Registration Committee.

Additionally, suppliers must have:

• At least three years' experience supplying polymer substrates to central banks or banknote printing organisations.
• The capacity to supply at least 20,400 reams, or 30% of the total requirement.
• Polymer sheet samples for laboratory testing.
• Certification confirming the material contains no animal tallow or DNA content.

The deadline for submitting bids is August 18.

Pilot to Decide Wider Rollout

While the RBI has not officially confirmed the denominations for the pilot project, RBI Governor Sanjay Malhotra had earlier indicated that the central bank is evaluating the feasibility and advantages of polymer banknotes before making a final decision.

The current procurement is intended only for the initial trial. Larger orders covering additional denominations may follow if field testing delivers positive results.

Why Polymer Currency Notes?

Polymer banknotes were first introduced by Australia in 1988 and are now used in more than 50 countries.

Compared with conventional paper currency, polymer notes offer several advantages:

• Longer lifespan
• Greater resistance to wear and tear
• Enhanced protection against counterfeiting
• Lower long-term printing and replacement costs
• Improved environmental sustainability due to reduced replacement frequency

If adopted nationwide, polymer notes could modernise India's currency system while improving security and durability.

Key Highlights

• RBI is preparing to pilot polymer Rs 10 and Rs 20 currency notes.
• BRBNMPL has invited global bids for polymer substrate sheets.
• The pilot could begin next year, with a wider rollout possible from 2027.
• Polymer notes will feature advanced anti-counterfeiting security elements.
• Suppliers must meet strict security, experience and sourcing requirements.
• Polymer currency is already used in more than 50 countries worldwide.

FAQs

Is RBI introducing plastic currency notes?

The RBI is preparing a pilot project for polymer (plastic) banknotes. A wider rollout will depend on the success of field trials.

Which denominations may be introduced first?

The pilot is expected to begin with Rs 10 and Rs 20 notes, although the RBI has not officially confirmed the denominations.

When could polymer notes be launched in India?

The pilot is likely to begin next year, and if successful, nationwide introduction could start in 2027.

Why are polymer banknotes better than paper notes?

Polymer notes are more durable, harder to counterfeit, last longer and reduce long-term printing costs.

Which countries already use polymer currency?

Australia introduced polymer banknotes in 1988, and today more than 50 countries use them.