RBI Targets FY28 for Polymer Notes

Why is RBI testing polymer only on ₹10 and ₹20?

Low-denomination notes like ₹10 and ₹20 change hands fastest, wearing out and needing replacement far sooner than higher notes. Governor Sanjay Malhotra said polymer's durability benefit is most valuable where circulation "velocity" is highest, so testing starts with these two denominations before any wider rollout.

How much longer do polymer notes last?

Malhotra said polymer notes have been in circulation for over 30 years in various countries, and their life is roughly 3-4 times that of a paper substrate note, cutting how often worn notes must be replaced.

Why switch to polymer at all?

Reports suggested RBI wants to avoid the rising cost of printing paper currency and the need to replace a high volume of soiled notes, alongside added security features like see-through windows and micro-optic holograms that resist counterfeiting.

Will paper notes disappear once polymer ones?

No. RBI's plan covers only ₹10 and ₹20 polymer notes, starting as a pilot with 1 billion pieces each for field trials before any wider rollout. Higher denominations and existing paper notes remain in circulation, and even the trial notes only scale up if performance in Indian conditions proves successful.

Why start with ₹10 and ₹20 notes only?

Governor Malhotra said lower denominations circulate fastest, so paper versions wear out sooner. Polymer lasts three to four times longer than paper substrate based on other countries' experience, making the durability gain most valuable for high-velocity, low-value notes rather than larger denominations.

What happens if the pilot fails?

Malhotra called it "still a pilot," saying RBI will test performance in Indian climate and infrastructure conditions first, and only then decide whether to scale up, either as is or with changes. A rollout is not guaranteed to proceed beyond trials.

Who will supply RBI's polymer substrate sheets?

Not decided yet. BRBNMPL, RBI's currency-printing arm, floated a global Expression of Interest on 17 July inviting manufacturers to bid for 68,000 reams of BOPP polymer substrate; bidders had until 18 August to apply, with the winning supplier still to be selected.

Who is barred from bidding?

Bidders must firewall any China or Pakistan operations from India-linked business, not source raw material from either country, and avoid staff who worked there. Firms from countries bordering India must register with DPIIT's Registration Committee to qualify.

What qualifications must suppliers have?

Bidders need at least three years' experience supplying polymer substrate with security features to a central bank or note-printing organisation, must offer at least 20,400 reams (30% of demand), submit 10 sample sheets for lab testing, and prove financial and manufacturing capacity.

Where would the notes be printed?

Once substrate is sourced, printing would happen at presses run by BRBNMPL, in Mysuru and Salboni, and by government-owned SPMCIL, which operates currency presses at Nashik, Dewas and Hyderabad plus a security paper mill in Narmadapuram, Madhya Pradesh.