India Prepares to Roll Out Plastic Notes in Major Currency Overhaul

India is set to introduce plastic notes, also known as polymer banknotes, in the coming months. The Reserve Bank of India (RBI) has been permitted to print 2 billion polymer notes, consisting of 1 billion each of Rs 10 and Rs 20 denominations.

The RBI's currency printing arm, Bharatiya Reserve Bank Note Mudran Pvt Ltd (BRBNMPL), has floated a tender for the supply of polymer substrate sheets with embedded security features. The suppliers must meet strict security conditions, including government clearance and restrictions on China and Pakistan-linked operations.

According to Minister of State for Finance Pankaj Chaudhary, the introduction of polymer banknotes is currently in a preliminary phase. He stated that international studies have shown that the life span of polymer banknotes is significantly higher than that of paper banknotes.

The RBI has also estimated that spending on security features costs around Rs 5,000 crore annually. Additionally, India has discarded around Rs 50 trillion worth of soiled notes in the last decade.