Plastic Currency May Soon Replace Paper Notes in India; RBI Begins Groundwork for Polymer Banknotes

India could soon witness one of the biggest changes to its currency system as the Reserve Bank of India (RBI) moves closer to introducing durable polymer (plastic) banknotes in place of conventional paper currency.

The initiative has gained momentum after Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL), one of the country’s banknote printing companies, issued a global Expression of Interest (EOI) to establish a polymer substrate manufacturing facility in India. The move marks an important step toward enabling domestic production of polymer banknotes, although the RBI has not yet announced a timeline for their rollout.

Global technology partners invited

The EOI, issued on July 17, seeks experienced international companies with expertise in manufacturing security-grade polymer substrates—the specialised plastic film used for printing polymer currency.

Rather than relying on imports, BRBNMPL aims to develop indigenous manufacturing through technology transfer and collaboration with global firms. The EOI is intended to identify suitable technologies, potential partners and viable business models before commercial production begins.

Why switch to polymer banknotes?

Currently, Indian currency is printed on cotton-based paper embedded with multiple security features. Polymer banknotes, however, are printed on specially engineered plastic substrates designed specifically for currency.

Polymer notes offer several advantages:

• Longer lifespan than paper currency
• Resistance to water, moisture and tearing
• Better hygiene as they absorb less dirt
• Advanced anti-counterfeiting features such as transparent windows and sophisticated optical security elements
• Lower replacement costs due to their durability

More than 60 countries have already adopted polymer banknotes, either for all denominations or selected ones.

Boosting domestic manufacturing

India has explored polymer currency in the past but has largely depended on imported substrates. Establishing domestic manufacturing would reduce dependence on overseas suppliers for a critical security material, strengthen the country’s high-security printing capabilities and improve supply-chain resilience.

The move also aligns with the government’s broader push for self-reliance in strategic manufacturing sectors.

Part of a larger currency modernisation plan

The polymer substrate project is part of a wider effort to modernise India’s currency. Earlier this year, BRBNMPL invited global firms to transfer technology for manufacturing colour-shift films, pigments and other advanced security components used in modern banknotes.

When will plastic notes be introduced?

Polymer banknotes are not expected to enter circulation immediately. The current EOI represents the initial phase of the project. Before polymer currency can be launched, India will need to finalise technology partners, establish manufacturing facilities, complete technology transfer and obtain approvals from the RBI and the Central Government.