Uflex Partners With US-Based Spectra Systems to Bid for RBI Polymer Banknote Pilot — October 4, 2026

Homegrown flexible packaging and polymer science major Uflex Ltd, in partnership with US-based authentication technology firm Spectra Systems, has submitted a bid to supply substrate materials for India's proposed polymer banknote programme. The procurement process is being steered by Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL), a wholly owned subsidiary of the Reserve Bank of India (RBI).

The submission marks an important milestone in the central bank’s multi-year assessment of plastic currency, aimed at significantly expanding the operational lifespan of high-velocity, small-denomination banknotes under challenging tropical climatic conditions.

Details of the BRBNMPL Tender

BRBNMPL had floated a global Expression of Interest (EOI) seeking specialized Biaxially Oriented Polypropylene (BOPP)-based opacified polymer substrates.

Key parameters of the procurement include:

• An initial requirement of 68,000 reams of substrate, divided equally into 34,000 reams each for ₹10 and ₹20 denominations.
• Uniform opacifying coatings alongside anti-static layers designed for high-speed currency printing and ink adhesion.
• Integration of advanced anti-counterfeiting features such as transparent portrait windows, metallic numerals, shadow images, magnetic pseudo-threads, and iridescent patterns.
• Strict national security safeguards barring the use of raw materials or personnel linked to China or Pakistan.

Government Approval and Scope of Field Trials

The central government has already granted formal clearance under Section 25 of the Reserve Bank of India Act, 1934, for field trials involving one billion pieces each of ₹10 and ₹20 polymer notes. Minister of State for Finance Pankaj Chaudhary confirmed the approval in Parliament, noting that regular issuance in these denominations would follow successful trials.

RBI Governor Sanjay Malhotra stated that polymer notes are expected to enter pilot circulation in the next financial year to evaluate performance, handling, and public acceptance under real-world usage. Central bank data indicates that small-denomination notes suffer the highest attrition, with currency printing costs standing at ₹4,875.2 crore in FY26. Polymer notes typically last three to four times longer than conventional cotton-rag paper notes, potentially yielding sizeable long-term logistics and replacement savings for the central bank.

Competitive Landscape and Market Significance

The partnership between Uflex and Spectra Systems pairs Uflex’s large-scale domestic film manufacturing infrastructure with Spectra Systems' proprietary "Fusion" polymer substrate and covert authentication taggants. In disclosures to investors, Spectra Systems highlighted that it is pursuing the supply agreement for the first billion notes alongside Uflex.

The consortium faces global and domestic competition for the contract. Other major contenders submitting proposals include Australia’s CCL Secure, Cosmo First in collaboration with the UK's De La Rue, and Vietnam-based Q&T Hi-Tech Polymer partnering with India's Pigments and Allieds.

For market participants tracking Indian specialty chemicals and packaging stocks, a successful bid would position Uflex at the forefront of India's currency indigenisation push, unlocking a recurring, high-margin revenue vertical if the RBI scales polymer notes beyond the initial trial phase.

Tags: Uflex Ltd Reserve Bank of India BRBNMPL Spectra Systems Currency Printing BSE