It's a revamp! RBI steps ahead on plan for plastic rupee notes
Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL), the RBI's currency-printing subsidiary, invited a global Expression of Interest (EoI) for supply of polymer substrate sheets for banknote printing
Eligible domestic and international manufacturers must submit bids by 18 August 2026
Bidders must hold at least three years of experience supplying security-featured polymer substrate to a central bank or note-printing organisation, obtain government security clearance, and isolate any China- or Pakistan-linked operations from the India contract
The move follows the RBI Governor's statement that the polymer-note proposal remains at a preliminary stage, with field trials to precede any decision on wider rollout
Polymer Banknotes and BOPP Substrate
Polymer banknotes are printed on a synthetic substrate — typically biaxially oriented polypropylene (BOPP) — instead of the cotton/paper-based substrate used for conventional currency. Polymer notes are more resistant to tearing, folding, moisture and soiling, are harder to counterfeit due to embedded transparent security windows, and generally last four to five times longer than paper notes, reducing replacement printing costs over time.
Key Details
- Australia issued the world's first polymer banknote (a commemorative $10 note) in January 1988, developed jointly by the Reserve Bank of Australia, CSIRO and the University of Melbourne; Australia fully switched to polymer notes by 1996
- Polymer notes are waterproof, machine-processable, and shreddable/recyclable at end of life
- India currently prints all currency on a cotton-and-linen paper substrate (broadly a 75:25 cotton-linen mix, per RBI); it has never used polymer substrate for circulating notes
BRBNMPL's EoI is India's first formal procurement step toward polymer currency, seeking suppliers of the same BOPP-type substrate used internationally, ahead of limited field trials.
BRBNMPL and India's Currency Printing Architecture
BRBNMPL is a wholly owned subsidiary of the RBI, incorporated in 1995 specifically to augment domestic banknote production and reduce the gap between currency supply and demand. It operates alongside the government-owned Security Printing and Minting Corporation of India Limited (SPMCIL) in India's dual currency-printing architecture.
Key Details
- BRBNMPL operates two presses, at Mysuru (Karnataka) and Salboni (West Bengal), with a combined capacity of around 16 billion note pieces annually on a two-shift basis
- BRBNMPL supplies roughly two-thirds of India's printed currency requirement; SPMCIL (via its presses at Nashik and Dewas) supplies the remainder
- BRBNMPL also operates an ink-manufacturing unit (Varnika) at Mysuru, set up in 2018, producing security inks
As the RBI's dedicated currency-production arm, BRBNMPL — not the RBI directly — is the body executing the polymer substrate procurement, consistent with its statutory mandate to manage note production logistics.
RBI's Currency Management Function
Under the RBI Act, 1934, the Reserve Bank has the sole right to issue banknotes in India (Section 22) and is responsible for currency management, including note design, denomination, security features, and periodic replacement of soiled notes — functions distinct from monetary policy, which is set by the Monetary Policy Committee.
Key Details
- Currency management costs (printing, distribution, exchange of soiled notes) are a recurring RBI expenditure category reported in its annual accounts
- A shift to more durable polymer substrate is being examined partly because printing costs have recently declined, making a substrate trial more feasible without a large near-term cost increase
- Security clearance and China/Pakistan-exclusion conditions in the tender reflect standard due-diligence requirements applied to sensitive currency-related procurement
The tender is a currency-management decision under RBI's statutory note-issuing function, separate from monetary policy actions such as repo rate changes.
- BRBNMPL EoI bid submission deadline: 18 August 2026
- Minimum bidder track record required: 3 years supplying polymer substrate with security features to a central bank/note-printing body
- Minimum supply capability required: at least 30% of estimated requirement
- BRBNMPL established: 3 February 1995, as RBI's wholly owned subsidiary
- BRBNMPL presses: Mysuru (Karnataka) and Salboni (West Bengal); combined capacity ~16 billion notes/year
- BRBNMPL share of India's currency printing: ~66% (remainder via SPMCIL)
- First country to issue a polymer banknote: Australia (1988); fully polymer currency by 1996