Uflex, US partner bid for RBI's polymer banknote manufacturing contract

Homegrown polymer science company Uflex has partnered with American firm Spectra Systems to compete for a Reserve Bank of India contract to manufacture polymer-based currency substrate, according to sources familiar with the development.

The tender was floated by Bharatiya Reserve Bank Note Mudran Pvt Ltd (BRBNMPL), the RBI's wholly-owned subsidiary, as the central bank evaluates potential suppliers for a new polymer banknote programme. The initiative represents India's exploration into plastic currency production, a technology already adopted by approximately 60 countries globally.

According to tender specifications, the RBI requires Biaxially Oriented Polypropylene (BOPP) sheets uniformly coated with opacifying ink and anti-static coating to ensure proper printing and ink adhesion. The procurement is for 68,000 reams—34,000 each for Rs 10 and Rs 20 denomination notes. The tender process began on July 17.

Polymer banknotes have become increasingly common in developed and developing economies. Australia pioneered the technology in 1988, while other major adopters include the United Kingdom, Canada, New Zealand, Singapore, Vietnam, and Romania. Plastic currency is valued for its durability and enhanced security features compared to traditional paper-based notes.

The outcome of the RBI's tender evaluation could pave the way for India's gradual transition to polymer-based currency production, potentially transforming domestic manufacturing capabilities in the banknote sector.