RBI moves closer to polymer notes, subsidiary floats tender, Pg15

Key Highlights:

• The Reserve Bank of India (RBI) is initiating trials for polymer currency notes.
• Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL), a subsidiary of the RBI, has floated a global tender for 68,000 reams of Biaxially Oriented Polypropylene-based Opacified Polymer Substrate.
• The trial will involve printing two denominations of notes, with 34,000 reams allocated for each.
• The tender includes strict clauses prohibiting raw material procurement from or engagement of individuals from Pakistan or China for the project.

Detailed Insights:

• Polymer notes are significantly more durable, lasting two to six times longer than traditional paper notes, which contributes to lower environmental impact and reduced replacement costs.
• They offer enhanced security features, making them harder to counterfeit, and are also cleaner, waterproof, and recyclable.
• The RBI spent ₹4,875 crore on printing currency notes in 2025-26, and detected 2.3 lakh counterfeit notes last year, an increase from 2.17 lakh in 2024-25.
• Australia was the first country to issue polymer banknotes in 1988, and over 50 countries globally now utilize them.
• The initial pilot is expected to focus on lower denominations like ₹10 and ₹20 notes to assess their performance in circulation.
• The tender requires bidders to have at least three years of experience supplying polymer substrate with security features to central banks or banknote printing organizations.
• RBI Governor Sanjay Malhotra had previously stated that the proposal for polymer notes was under consideration, examining its pros and cons.

Key Concepts Involved:

• Polymer Notes: Currency notes made from a plastic polymer, offering enhanced durability, security, and environmental benefits compared to paper.
• Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL): A wholly-owned subsidiary of the Reserve Bank of India, established in 1995, responsible for designing, manufacturing, and supplying banknotes.
• Security Printing and Minting Corporation of India Limited (SPMCIL): A Public Sector Undertaking under the Ministry of Finance, involved in printing currency notes, security paper, and other security documents.
• Biaxially Oriented Polypropylene-based Opacified Polymer Substrate: The specific type of polymer material used for printing banknotes, known for its strength and security features.