Archive · 14 Nov 2025
Nepal Shifts Banknote Printing to China Amid Cost and Political Factors
Nepal needs new money, like Rs 1,000 bills, and they've chosen a company in China to print them.
This is a big change because for many years, a company in India used to print Nepal's money.
The Chinese company is printing these bills because they offered the lowest price and have good security features to stop fake money.
Also, some of Nepal's new money designs include areas that are claimed by both Nepal and India.
Because of this disagreement, India might not be able to print those specific notes.
China is the biggest money printer in the world and also prints money for other countries in Asia.
This shift helps Nepal get its money printed more cheaply and with better security.
Nepal's central bank awarded a $17 million contract to China Banknote Printing and Minting Corporation (CBPMC) for 430 million Rs 1,000 notes.
CBPMC has secured seven consecutive banknote printing contracts for Nepal since 2015, earning approximately $63 million.
Nepal has increasingly outsourced currency printing to China due to cost-effectiveness and advanced security features.
The inclusion of disputed territories like Lipulekh, Limpiyadhura, and Kalapani on new Nepalese currency makes printing in India politically sensitive.
China is the world's largest money printer and also supplies currency for other South Asian nations like Bangladesh, Sri Lanka, and Malaysia.
- Who
- Nepal Rastra Bank (NRB) and China Banknote Printing and Minting Corporation (CBPMC)
- What
- Nepal Rastra Bank has awarded a contract to China's CBPMC for printing 430 million Rs 1,000 denomination banknotes, continuing a trend of shifting currency printing from India to China.
- When
- Letter of intent sent last Friday; CBPMC has won consecutive bids since 2015.
- Where
- China Banknote Printing and Minting Corporation facilities in China.
- Why
- CBPMC was the lowest bidder, offers advanced security features, and political sensitivity regarding disputed territories on Nepalese currency makes printing in India problematic.
India's Perspective
Nepal's Perspective
Historical Relationship and Printing Capabilities
India's Perspective
India's Security Press in Nashik was Nepal's trusted partner for decades, printing currency consistently from 1945 to 1955 and continuing collaboration.
Nepal's Perspective
While India was a long-time partner, Nepal has increasingly opted for China's CBPMC since 2015 due to perceived cost savings and access to advanced security features.
Political Sensitivity of Currency Design
India's Perspective
India would be unable to print Nepalese currency depicting disputed territories like Lipulekh, Limpiyadhura, and Kalapani as part of Nepal due to the territorial claims.
Nepal's Perspective
Nepal's decision to include disputed territories on its currency necessitated looking for alternative printers, leading them to China.
- New Contract Value
- $17 million (Rs 150 crore)
- Quantity of Rs 1,000 Notes
- 430 million pieces
- China Banknote Printing and Minting Corporation (CBPMC) Earnings from Nepal (since 2015)
- $63 million (Rs 559 crore)
- Total Banknotes Printed by CBPMC for Nepal (since 2015)
- 2.38 billion pieces
- Countries Outsourcing Banknote Printing to China
- Bangladesh, Sri Lanka, Malaysia, Thailand, Afghanistan, Nepal
- CBPMC's Capabilities
- World's largest money printer by scale, offers modern security features (watermarks, holographic threads, Colordance feature)
- Previous Contract with Indian Firm
- Jan 2023: Rs 50 denomination notes (300 million pieces, $5 million)
