The Reserve Bank of India (RBI) is set to begin the first pilot rollout of polymer banknotes soon, marking the next phase in the central bank's plan to introduce the new-generation currency, official sources told NDTV Profit.
The pilot is likely to begin with smaller —₹10 and ₹20 denomination banknotes. Based on the outcome of the trial, the RBI is expected to move towards a full-scale rollout from 2027, sources said.
The introduction of polymer banknotes will not replace the existing paper currency. Instead, polymer and paper banknotes will coexist, with the new notes being introduced in a phased manner while the current paper notes continue to remain in circulation, they underlined.
The move gathers momentum after the RBI's note-printing arm floated a global Expression of Interest (EOI) for the manufacture and supply of polymer substrate sheets, the specialised material used to print polymer banknotes.
According to the tender document, global manufacturers have been invited to supply polymer substrate embedded with advanced security features designed to enhance the durability of banknotes and strengthen protection against counterfeiting. The last date for submitting bids is August 18.
Polymer banknotes are considered significantly more durable than conventional paper currency, lasting longer in circulation and being more resistant to moisture, dirt and wear and tear. They also allow for the incorporation of sophisticated security features, making them more difficult to counterfeit. Several countries, including Australia, Canada, the United Kingdom and New Zealand, have already adopted polymer currency.
The RBI had earlier announced its intention to introduce polymer banknotes as part of its broader strategy to improve the quality and longevity of currency in circulation. The pilot rollout will be the first on-ground test before a wider launch.
An email sent to the RBI seeking comments remained unanswered till the time of publishing.
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