A strict crackdown on counterfeit notes and cross-border financial schemes in the country. In this regard, the Reserve Bank of India is going to take a big and historic step. The process has been accelerated to start circulating plastic notes in India soon. For this, national security has been given top priority in the global tender issued, so that no company from China or Pakistan can directly or indirectly enter into it. For security reasons, the RBI subsidiary ‘Reserve Bank of India Note Printing Limited’ has set strict rules for the companies applying for the tender.
All bidders will have to sign an integrity pact, confidentiality agreement and no-agent pact. The companies will have to give a clear promise that their operations in India will be completely separate from their operations in China and Pakistan. In view of the controversy over the use of animal fat in banknotes in countries like the UK, the RBI has clarified that the polymer substrate to be supplied will not contain any animal fat or DNA.
Urgent requirement for 68,000 reams of polymer substrate:
According to the ‘Expression of Interest’ issued by the ‘Reserve Bank of India Note Printing Limited’, in the first phase, about 68,000 reams of polymer substrate are required for small denomination notes i.e. 10 and 20 rupees. Indian and foreign companies have shown interest in this huge tender process. Indian BOPP exporter ‘Cosmo Fast’ has submitted the bid in partnership with the world’s largest note supplier ‘De La Rue’ of the UK. The company, which supplies polymer notes to 40 central banks, claims that the plastic notes are 6 times more durable than regular paper notes. This private company from Vietnam has also submitted an EOI, which claims to reduce lifecycle costs by 78% compared to paper notes.
Why are plastic notes important?
Plastic or polymer notes are cleaner, more environmentally friendly and safer than paper notes. It is almost impossible to make fake notes in them. Since small denomination paper notes deteriorate quickly in the Indian climate, the RBI is finalizing preparations to introduce these long-lasting plastic notes.
