India Polymer Banknotes Supply Bids Include Tallow-Free Substrate
Indian and foreign companies have submitted bids to supply polymer substrate sheets for banknotes, bringing India a step closer to introducing plastic currency for lower denominations. The process is being handled by Bharatiya Reserve Bank Note Mudran Pvt Ltd (BRBNMPL), a subsidiary of the Reserve Bank of India.
The India polymer banknote supply bids were invited through a global Expression of Interest, with the deadline set for August 18. At least two foreign manufacturers and an Indian substrate producer partnered with UK-based banknote manufacturer De La Rue are understood to have submitted bids.
The bidding process includes several safeguards because of the sensitivity surrounding future polymer banknote supplies. Companies have been required to sign an integrity pact and confidentiality agreement, along with a no-agent undertaking. They must also ensure that their Indian operations are separated from any operations they may have in China and Pakistan.
Another key requirement concerns the material used to produce the banknotes. Bidders must certify that their polymer substrate contains no animal tallow or related DNA. The requirement comes amid earlier concerns in other countries about the use of animal-derived materials in banknotes.
The polymer banknote substrate is expected to undergo testing across different climatic conditions. BRBNMPL has indicated an immediate requirement for around 68,000 reams, with each ream containing 500 polymer sheets. Companies whose samples meet the required standards will be eligible for the final tender.
Cosmo First, an Indian manufacturer and major exporter of biaxially oriented polypropylene, is among the companies understood to be participating. The company has identified De La Rue as its technical partner for providing security features for the polymer substrate.
Australia-based CCL Secure is another bidder understood to have entered the process. The company supplies polymer currency solutions to central banks and promotes features designed to improve durability and reduce counterfeiting.
The India polymer banknote supply bids are part of a proposal to initially introduce polymer currency in Rs 10 and Rs 20 denominations. The approach could allow polymer notes to be used alongside conventional cotton-based currency.
The polymer banknote substrate bidding process will now move toward technical testing before a final tender is issued. The India polymer banknotes supply bids therefore represent an early stage in the potential shift toward plastic currency in India.
