Homegrown polymer science firm Uflex, in partnership with the US-based Spectra Systems, has submitted bids for India's proposed polymer banknote programme as the Reserve Bank of India (RBI) evaluates potential suppliers to manufacture polymer-based currency substrate. According to reports from Rediff Moneynews, the tender was floated on July 17 with August 18 as the last date for submission of expressions of interest (EOI). A joint proposal from Uflex and Spectra Systems has submitted a bid in the tender, though a query sent to Uflex seeking comment on its participation in the EOI remained unanswered. The programme was initiated by Bharatiya Reserve Bank Note Mudran Pvt Ltd (BRBNMPL), a wholly-owned subsidiary of the Reserve Bank of India (RBI).
As per the tender document, the programme seeks Biaxially Oriented Polypropylene (BOPP), coated uniformly with opacifying ink to the required colour, along with an anti-static coating, to provide a good surface for printing and ink adhesion. According to Rediff Moneynews reports, it requires 68,000 reams, with 34,000 each for ₹10 and ₹20 denominations. The proposed programme is expected to involve technical evaluation and testing of substrate samples before the larger procurement process, with assessment examining aspects such as security features, manufacturing consistency, scalability and long-term supply capabilities.
The RBI, with the recommendation of its Central Board, had sent a proposal to the government in terms of Section 25 of the Reserve Bank of India Act, 1934, for introduction of one billion pieces each of ₹10 and ₹20 polymer banknotes for field trials and for regular issuance of polymer banknotes in these two denominations after successful completion of field trials. As reported by Rediff Moneynews, Minister of State for Finance Pankaj Chaudhary stated in a reply to the Lok Sabha on July 27 that the proposal has been approved by the government. The introduction of polymer banknotes is currently in a preliminary phase and the impact on digital payments could be ascertained only after regular issuance of these notes. According to Rediff Moneynews, banknotes and digital payment systems are complementary payment tools available to the public.
According to Rediff Moneynews reports, polymer (plastic) currency is used fully or partially by around 60 countries, with Australia being the first to introduce it in 1988. Other major nations that use polymer banknotes include the United Kingdom, Canada, New Zealand, Singapore, Vietnam, and Romania. The Uflex-Spectra partnership brings together Uflex's polymer manufacturing and industrial capabilities with Spectra Systems' expertise in banknote authentication and security technologies, as reported by Rediff Moneynews. The proposed programme comes as India evaluates the feasibility of polymer-based currency substrates and the industrial capabilities required to manufacture them at scale.
