RBI prepares for plastic banknotes: Here's why India's currency may see its biggest makeover

Plastic banknotes could soon become a reality in India. The Reserve Bank of India (RBI) is laying the groundwork for one of the biggest changes to the country's currency system in decades, replacing conventional paper-based notes with more durable polymer banknotes.

The move has taken a significant step forward with Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL), one of India's banknote printing companies, issuing a global Expression of Interest (EOI) to set up a polymer substrate manufacturing facility in the country. 

The development signals that India is moving beyond discussions and preparing the ecosystem needed to print polymer currency domestically. While the RBI has not announced a rollout timeline, the latest tender is a crucial building block in making plastic banknotes a reality. 

Why is BRBNMPL inviting global firms? 

The EOI, issued on July 17, seeks technology partners with proven expertise in manufacturing security-grade polymer substrates — the specialised plastic film on which polymer banknotes are printed. 

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Rather than importing the material, BRBNMPL wants to establish domestic manufacturing through technology transfer and collaboration with experienced global players. The exercise is aimed at identifying companies capable of helping India build an indigenous production ecosystem for polymer banknote substrates. 

An Expression of Interest is not a procurement order. Instead, it is the first step towards assessing available technologies, potential partners and suitable business models before commercial production begins. 

Why polymer banknotes? 

Most Indian banknotes are currently printed on cotton-based paper embedded with multiple security features. Polymer notes use a specially engineered plastic substrate designed exclusively for currency printing. 

Countries that have adopted polymer banknotes cite several advantages: 

• They last significantly longer than paper notes. 
• They are resistant to water, moisture and tearing. 
• They remain cleaner because they absorb less dirt. 

They can incorporate sophisticated anti-counterfeiting features, including transparent windows and advanced optical security elements. Their longer lifespan reduces replacement costs over time.

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Today, more than 60 countries have introduced polymer banknotes, either fully or for selected denominations. 

Why domestic production matters 

India has explored polymer currency in the past but has largely depended on imported substrates. 

Setting up a manufacturing facility within the country would reduce reliance on overseas suppliers for a strategic security material while strengthening India's capabilities in high-security printing. Domestic production could also improve supply-chain resilience, lower procurement costs over the long term and support the government's broader push for self-reliance in critical manufacturing technologies. 

Part of a broader currency modernisation push 

The polymer substrate initiative is not an isolated move. 

Earlier this year, BRBNMPL also invited global firms to transfer technology for manufacturing colour-shift films, pigments and other advanced security products used in modern banknotes.

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The latest EOI expands that strategy by targeting one of the most critical components required for next-generation currency. 

Will plastic notes enter circulation soon? 

Not immediately. 

The current EOI is only the first stage in the process. Before polymer banknotes can be introduced, India will need to identify technology partners, establish manufacturing facilities, complete technology transfer and secure the necessary approvals from the RBI and the government.