RBI to test markets with polymer notes in INR 10 and INR 20 denominations soon

STC NEWS MONITORING DESK
SRINAGAR, OCTOBER 08 (STC):
Polymer banknotes for the INR 10 and INR 20 denominations are soon hitting markets in the India, with the Reserve Bank of India (RBI) evaluating BOPP-based polymer substrates as a more durable alternative to conventional paper currency, says reports appearing in a cross section of media.
According to the reports, the government has approved the RBI’s proposal for field trials involving one billion INR 10 notes and one billion INR 20 notes. The trials will not involve an immediate replacement of existing paper notes. If adopted, polymer banknotes are expected to circulate alongside conventional currency.
The focus on INR 10 and INR 20 notes reflects their high frequency of use. These denominations change hands more often and are consequently more susceptible to soiling, damage and early withdrawal from circulation.
Notably, Bharatiya Reserve Bank Note Mudran (BRBNMPL), the RBI’s wholly owned subsidiary, has invited bids for 68,000 reams of polymer substrate, divided equally between the two denominations. The tender specifies biaxially oriented polypropylene (BOPP) as the base material, with suitable coatings for printing and ink adhesion. The substrate will also need to support the security features required for banknotes.
Several companies have entered the bidding process, including thise having foreign collaborations.
Notably, the RBI is seeking an opacified BOPP-based material capable of supporting high-quality banknote printing, ink adhesion and security features, including transparent windows and anti-counterfeiting elements.
Polymer banknotes typically have a longer service life than paper notes. RBI governor Sanjay Malhotra has said polymer notes can last three to four times longer than paper currency, which could reduce the frequency of replacement for heavily circulated denominations.
It’s worth mentioning that the RBI is targeting introduction of polymer banknotes from FY28, subject to the outcome of field trials and further evaluation.

(Straight Talk Communications)