RBI readies field trials of Rs 10 and Rs 20 polymer notes; two firms bid to supply material
The Reserve Bank of India is preparing field trials of polymer notes, and UFlex and Spectra Systems have jointly bid to supply the material.
Paper currency notes in the country may soon give way to plastic, or polymer, notes. The Reserve Bank of India (RBI) is drawing up a major plan for this, and preparations have begun for field trials of polymer notes of Rs 10 and Rs 20.
Proposals have been invited from companies to supply the material needed for polymer currency, and two companies have now entered the project. The government has already approved field trials of the Rs 10 and Rs 20 polymer notes.
The move comes at a time when plastic-based currency is in use in many countries around the world, as these notes are considered more durable than the current paper notes. Discussion on polymer notes in India and the companies involved has now picked up.
The project has been started by Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL), a wholly owned subsidiary of the RBI. Under the project, companies are being selected to supply the special material needed to make polymer notes.
A special polypropylene material called BOPP is required. It will improve the printing of the notes and help the ink adhere well. The proposed procurement needs an estimated 68,000 reams of the material, including 34,000 reams each for the Rs 10 and Rs 20 notes.
Two companies are in the race. Indian polymer company UFlex has partnered with US-based Spectra Systems, and the two have jointly submitted a bid for the polymer note project.
The partnership could benefit from UFlex's polymer manufacturing capacity and Spectra Systems' note security and authentication technology. UFlex was asked to comment on its participation in the tender but did not respond.
