RBI Invites Global Bids for Polymer Banknote Substrates – India’s First Step Toward Plastic Currency

Overview India, one of the world’s five largest economies, is moving closer to issuing plastic currency . After three decades since the initial 2009 proposal, the RBI ’s currency printing subsidiary has issued a global Expressions of Interest (EoI) for polymer substrates with built‑in security features . This marks the most concrete step toward adoption of polymer banknotes in India. Key Developments Early July 2026: RBI’s subsidiary released an EoI inviting international vendors to supply polymer substrates. The tender seeks substrates that embed advanced anti‑counterfeiting security features . India aims to join the ~60 nations already using polymer notes, following Australia’s full rollout in the early 1990s. Important Facts Polymer notes last 2‑3 times longer than paper notes, reducing replacement costs. They are more resistant to water, dirt, and tearing, improving durability in diverse Indian climates. Advanced polymer substrate technology can embed holograms, transparent windows, and micro‑optical features. Adoption will require redesign of existing note denominations and updates to ATMs and cash‑handling equipment. UPSC Relevance The move touches upon several GS‑3 topics: monetary policy, currency management, and financial inclusion. Aspirants should note the economic benefits (cost savings, longer life) and security implications (counterfeit deterrence). Understanding the procurement process via an <span class="key-term" data-definition="Expressions of Interest (EoI) — formal invitation by a government ag