India could soon witness a major transformation in the way its currency looks and lasts. The Reserve Bank of India (RBI) has taken a significant step towards introducing plastic currency notes, also known as polymer banknotes, by initiating preparations for a pilot project expected to begin next year.
According to reports, the central bank is likely to start the trial with Rs 10 and Rs 20 notes. If the pilot proves successful, India could gradually roll out polymer currency across more denominations from 2027 onwards. The move is aimed at making Indian banknotes more durable, secure and resistant to counterfeiting.
The development marks one of the biggest changes in India’s currency system since the introduction of the Mahatma Gandhi (New) Series notes.
RBI Begins Preparations for Plastic Currency Notes
The RBI’s currency-printing arm, Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL), has invited global manufacturers to supply specialized polymer substrates that will be used to print the pilot batch of banknotes.
As part of the process, the organisation has floated a Global Expression of Interest (EOI) seeking around 68,000 reams of high-security polymer sheets. These sheets will be used for two separate denominations, believed to be Rs 10 and Rs 20.
Each polymer sheet will come embedded with advanced security features before printing begins at BRBNMPL and Security Printing and Minting Corporation of India (SPMCIL) facilities.
Although the RBI has not officially confirmed the denominations, reports indicate that low-value notes have been chosen because they circulate more frequently and wear out much faster than higher denominations.
Why RBI Wants Plastic Currency Notes
Traditional paper currency gradually deteriorates due to constant handling, moisture, dust and folding. Lower-value notes often become unusable within a short period, forcing the RBI to print replacements regularly.
Polymer banknotes are expected to solve many of these issues.
Unlike paper notes, plastic notes are waterproof, tear-resistant and significantly more durable. They can remain in circulation for several years without suffering major damage.
Another major advantage is security. Polymer notes are much harder to counterfeit because they include sophisticated features that are difficult to replicate.
The proposed Indian polymer notes are expected to include:
- Transparent security windows
- Metallic numerals
- Magnetic security threads
- Shadow images
- Iridescent patterns
- Advanced anti-counterfeiting elements
These features are already used successfully by several countries that have adopted polymer currency.
Strict Conditions for Global Suppliers
The RBI has laid down strict eligibility rules for companies interested in supplying polymer substrates.
Manufacturers must have at least three years of experience supplying polymer banknote material to central banks or authorised currency-printing organisations. They must also demonstrate the ability to meet large-scale production requirements.
The tender also includes stringent security conditions.
Suppliers cannot source raw materials from China or Pakistan for the project. Their India-related operations must remain completely separate from facilities operating in those countries, and personnel previously associated with such operations cannot be deployed on the Indian project.
Additionally, companies from countries sharing land borders with India must obtain approval from the Department for Promotion of Industry and Internal Trade (DPIIT) Registration Committee before becoming eligible.
Bidders are also required to submit sample polymer sheets for laboratory testing and certify that the material contains no animal tallow or DNA.
Pilot Success Will Decide Nationwide Rollout
The RBI has clarified that this procurement is only for the pilot phase.
The field trials will assess how polymer notes perform under Indian climatic conditions, including extreme heat, humidity, dust and heavy public usage.
If the pilot delivers satisfactory results, larger orders covering additional denominations may be placed in the coming years.
RBI Governor Sanjay Malhotra had earlier confirmed that the central bank was examining the feasibility and benefits of polymer banknotes before taking a final decision.
More Than 50 Countries Already Use Polymer Notes
Polymer banknotes were first introduced by Australia in 1988 and are now used in over 50 countries, including Canada, New Zealand, the United Kingdom, Singapore and several Asian and European nations.
These countries report longer note life, reduced replacement costs and stronger protection against counterfeit currency.
If the RBI’s pilot succeeds, India could join this growing list by replacing some of its paper currency with modern, longer-lasting plastic banknotes.
The upcoming trial could become a significant milestone in the evolution of India’s currency system, balancing durability, security and long-term cost efficiency while modernising everyday cash transactions.
