UFlex and Spectra Systems Bid for India’s Polymer Banknote Program
UFlex, a Noida-based flexible packaging company, has joined forces with US-based Spectra Systems to bid for India’s proposed polymer banknote program. The initiative, led by Bharatiya Reserve Bank Note Mudran Pvt Ltd (BRBNMPL), aims to enhance the durability and cost efficiency of lower-denomination currency notes, particularly the ₹10 and ₹20 denominations. The tender, issued on July 17 with a deadline of August 18, seeks 68,000 reams of biaxially oriented polypropylene (BOPP) film, split equally between the two denominations.
The program follows government approval for a trial run of one billion polymer notes each for ₹10 and ₹20, as disclosed by Minister of State for Finance Pankaj Chaudhary in a Lok Sabha reply. The RBI’s Central Board recommended the proposal under Section 25 of the RBI Act, 1934. The trial phase will assess the feasibility of polymer notes before any regular issuance begins. Chaudhary emphasized that the introduction of polymer notes is still in its early stages and any impact on digital payments will be evaluated later.
The UFlex-Spectra partnership leverages UFlex’s polymer manufacturing expertise and Spectra Systems’ knowledge in banknote authentication and security technologies. The tender process includes technical evaluations and testing of substrate samples to ensure security features, manufacturing consistency, scalability, and long-term supply capability. UFlex operates two BOPP film lines in its Noida plant and is reportedly planning a 54,000-ton-a-year BOPP line in Karnataka.
The RBI aims to circulate polymer notes starting from FY28, subject to successful testing and operational assessments. Governor Sanjay Malhotra had previously stated that the central bank is at the pilot stage, focusing on testing the notes under Indian climatic and usage conditions. Polymer notes, used by around 60 countries, are known for their durability, resistance to water and dirt, and advanced security features. The move is part of India’s efforts to expand currency printing capacity as cash requirements grow.