India eyes plastic notes: How government plans to keep polymer currency safe from China and Pakistan influence | Today’s news
According to many reports, India is set to introduce polymer notes, starting with low denominations. Indian and overseas companies are vying to supply the specialized polymer substrate required to make the banknotes, reports The Indian Express. The development comes after Bharatiya Reserve Bank Note Mudran Pvt Ltd (BRBNMPL), a subsidiary of the Reserve Bank of India (RBI), invited global bids for polymer substrates with embedded security features.
Polymer banknotes supply chain without Pak, China links searched
The latest purchase report also suggests security concerns surrounding the production of Indian currency notes. On the basis of the same report, the candidates were asked to sign an undertaking. It is described as a non-disclosure agreement and non-agent pact which states that their operations in India will be protected from operations they may have in China and Pakistan. This condition suggests that while India is open to global suppliers, it is working to separate India’s currency supply chain and the operations of the two neighboring countries.
In early July, an expression of interest (EOI) requested 68,000 stacks of BOPP (Biaxially Oriented Polypropylene) polymer substrate, 34,000 stacks each for two denominations, each stack containing 500 sheets, according to ANI.
Indian and foreign companies in the plant
These samples submitted by bidders will reportedly be tested in different climate zones. Only eligible candidates can enter the final selection process.
Applicants are also reportedly required to provide proof of net worth, production capacity and security clearance eligibility.
Among the companies said to be in the race is Indian substrate maker Cosmo First, which has partnered with British banknote maker De La Rue. The report added that Cosmo First has listed De La Rue as its technical partner, which is expected to provide security features for the polymer substrate. Australia’s CCL Secure, which supplies polymer solutions to around 40 central banks, is another reported bidder that may supply polymer for Indian notes.
The final polymer substrate is expected to meet specific requirements.
The material must include protective features, including a clear window with a portrait, a metal numeral, a magnetic pseudo-thread, a shadow image and a rainbow pattern, suitable for printing on BRBNMPL and SPMCIL printers.
No animal sebum in polymer tones
In addition to these requirements, bidders were asked to confirm that the material supplied by BRBNMPL does not contain any animal tallow or its DNA. Concerns about animal-derived materials in banknotes in countries such as the UK have been reported as one of the reasons for the RBI’s hesitancy on the polymer currency.
India’s transition to polymer notes is unlikely to be an immediate replacement for the current paper currency.
The Indian Express also reported that the RBI is likely to pursue a combination of polymer and conventional cotton-based currency. ₹10 a ₹The 20 denominations are likely to be the first in the polymer format. Polymer bills are marketed as more durable and safer than traditional cotton-based bills. CCL Secure claimed that polymer notes last six times longer than paper currency.
The government has not yet confirmed the full introduction of polymer banknotes.
