Polymer Currency Notes (Indian Economy)
Polymer Currency Notes (Indian Economy)
Why In News:
Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL), the currency-printing subsidiary wholly owned by the Reserve Bank of India, has floated a global Expression of Interest inviting manufacturers to supply security-grade polymer substrate sheets, signalling that India is moving toward a pilot for plastic banknotes.
Source: The Indian Express, Page 13, 18 July 2026, 'RBI moves closer to polymer notes, subsidiary floats tender'
What is Being Proposed
Polymer substrate: A plastic-based material used instead of paper (cotton-based cloth substrate) to print banknotes; it is more durable, resistant to moisture, and harder to counterfeit than conventional paper notes.
Pilot denominations: Reports suggest the initial pilot may cover the Rs 10 and Rs 20 denominations before any decision on wider rollout across other denominations.
Why Polymer Notes?
Durability: Polymer notes are estimated to last around two and a half times longer than paper notes, reducing the frequency and cost of note replacement.
Cost of printing and disposal: High costs associated with printing and replacing soiled paper currency have been a driver for the central bank to explore alternatives.
Global precedent: More than 50 countries, including Australia, Canada, the United Kingdom, and New Zealand, already use polymer or hybrid substrate for some or all of their currency.
Security features: Polymer substrates allow transparent windows and other advanced security features that are difficult to replicate, helping counter currency counterfeiting.
Key Facts for Prelims
BRBNMPL: Bharatiya Reserve Bank Note Mudran Private Limited, a wholly owned subsidiary of the RBI that manages two of India's currency printing presses, located at Mysuru (Karnataka) and Salboni (West Bengal).
Other printing presses: India's other currency presses, at Nashik and Dewas, are operated by the Government of India through the Security Printing and Minting Corporation of India Limited (SPMCIL).
Legal tender authority: Under the RBI Act, 1934, the Reserve Bank of India has the sole right to issue currency notes in India, other than one-rupee notes and coins, which are issued by the Government of India.