RBI’s Currency Printing Arm Invites Bids for Polymer Note Material

India has officially taken the first significant step toward introducing polymer currency notes. The Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL), a subsidiary of the Reserve Bank of India (RBI), has invited bids from domestic and international manufacturers for the supply of polymer substrate sheets integrated with advanced security features. Interested companies have until August 18 to submit their applications.

This development marks a historic shift for India, which has exclusively printed its currency on specialized paper for nearly a century. However, the central bank has not yet provided clarity on which specific denominations will transition to polymer or the exact timeline for their official circulation.

Strict National Security Clauses Imposed
Given the sensitive nature of currency manufacturing, the RBI has assigned utmost priority to national security in this tender. Prospective suppliers must adhere to highly stringent conditions:

– Security Clearance: Bidders must obtain mandatory security clearance from the Indian government.
– Restricted Sourcing: The use of any raw materials sourced from China or Pakistan is strictly prohibited.
– Exclusivity Guarantee: Suppliers must legally guarantee that the specific polymer substrate manufactured for Indian currency will not be supplied to any other nation.

Field Trials and Rising Cash Circulation
For the initial phase, BRBNMPL has outlined a requirement of 68,000 reams of polymer substrate. The procurement volume is expected to increase substantially if the upcoming field trials yield successful results. This aligns with recent statements from RBI Governor Sanjay Malhotra, who mentioned last month that discussions regarding the transition to polymer notes were in their preliminary stages.

The shift is largely driven by the inherent advantages of polymer notes, which offer significantly higher durability and can host far more sophisticated security features compared to traditional paper currency.

Interestingly, while the central bank’s currency printing costs dropped by 25% to ₹4,875 crore during the 2025-26 financial year, physical cash usage across the country continues on an upward trajectory. By March this year, the total value of currency in circulation reached a massive ₹41.23 lakh crore. Notably, the ₹500 note remains the undisputed backbone of the cash economy, currently accounting for a commanding 86% share of the total currency value in circulation.