India Initiates Global Procurement for Polymer Banknote Substrate

India has taken another significant step towards the possible introduction of polymer banknotes with Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL) issuing a Global Expression of Interest (EOI) on July, 17 2026 for the manufacture and supply of opacified polymer substrate sheets with advanced security features.

The initiative is aimed at identifying experienced domestic and international manufacturers capable of producing high-security polymer substrates suitable for printing Indian banknotes. While this does not confirm the immediate introduction of polymer currency, it demonstrates that the groundwork for its adoption is now progressing in a structured manner.

Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL) is a wholly owned subsidiary of the Reserve Bank of India and is under the ownership of the Ministry of Finance, Government of India. Established in 1995 to augment the country's banknote printing capacity, BRBNMPL is responsible for the production of Indian banknotes through its state-of-the-art printing presses, helping meet the nation's growing currency requirements.

The EOI envisages an indicative procurement of approximately 68,000 reams of polymer substrate, divided equally between two banknote denominations. Each bidder must be capable of supplying at least 30 per cent of this quantity to qualify. The proposed substrate will be based on biaxially oriented polypropylene (BOPP) and is expected to incorporate sophisticated security features such as transparent windows, metallic numerals, magnetic pseudo threads, iridescent patterns and other anti-counterfeiting elements specifically designed for Indian banknotes.

Unlike conventional cotton-based banknote paper, polymer substrate is known for its longer circulation life, superior resistance to moisture, dirt and tearing, and its ability to accommodate complex security features that are considerably more difficult to replicate. These characteristics have prompted several countries to adopt polymer banknotes over the past three decades, and India is now exploring the same technology for its future currency requirements.

The document prescribes rigorous qualification requirements for prospective suppliers. Manufacturers must have supplied polymer banknote substrates to central banks, banknote printing organisations or security printing agencies for at least the previous three years. They must also demonstrate adequate production capacity, maintain sound financial health and provide documentary evidence of their technical capabilities. BRBNMPL has reserved the right to inspect manufacturing facilities to verify these claims before any bidder is shortlisted.

Security remains the central focus of the procurement process. Every bidder will be required to undergo Government of India security clearance and disclose comprehensive details relating to ownership, beneficial shareholders and foreign collaborations. In addition, companies must declare any operations in China or Pakistan and provide an undertaking that the raw materials used for manufacturing India's polymer substrate will not originate from either country. The EOI further requires that operations connected with India remain completely isolated from any activities in these countries, highlighting the strategic importance attached to banknote production.

Another important provision relates to exclusivity. Manufacturers must undertake that the India-specific polymer substrate and its technical specifications will not be supplied to any other country or third party. They are also required to maintain strict confidentiality regarding the substrate design and associated security features, ensuring that India's future banknotes remain unique and protected against unauthorised disclosure.

Before qualifying for the main tender, bidders must also submit polymer substrate samples for laboratory evaluation. The samples must be free from animal tallow or DNA, and suppliers are required to certify this through a formal declaration. Only those meeting all technical, security and quality requirements will be considered for the next stage of procurement.

For collectors, researchers and the numismatic community, this announcement represents one of the most significant developments in Indian currency technology in recent decades. While the issuance of this Global EOI should be viewed as a preparatory phase rather than a final decision to replace India's existing paper banknotes. Nevertheless, it represents one of the clearest indications yet that India's currency printing authorities are actively preparing for polymer banknotes. If the proposed evaluation and field trials are successful, the initiative could pave the way for a gradual transition to a more durable, secure and technologically advanced generation of Indian currency.