Background
For decades, Nepal relied on India to print its currency notes. From 1945 until 1955, the country’s banknotes were produced at India’s Security Press in Nashik. Even after that, India continued to handle parts of Nepal’s currency printing until 2015. But that year marked a major shift. Nepal turned to China instead, citing cost, technology, and political reasons. Moneycontrol
Political sensitivity and design change
The change was not merely an economic decision. Nepal’s new banknotes feature a revised national map that shows the disputed territories of Lipulekh, Limpiyadhura, and Kalapani as part of Nepal. These areas are also claimed by India, making it politically sensitive for New Delhi to print the new notes. When India declined to print the revised currency, Nepal sought alternatives. The contract eventually went to China, whose state-owned company offered advanced printing technology at a lower cost. Moneycontrol
Contract: Letter of Intent
Date: 7 November 2025
Letter of Intent: M/S China Banknote Printing and Minting Corporation
“This is to notify you that, it is our intention to award the contract for execution of the Procurement of the Designing, Printing, Supply and Delivery of 430 Million Pieces of Nepalese Rupees 1000 Denomination Banknotes and Related Services (IFB No. NRB/CMD/ICB/G-02/082,83) to you as your bid price USD 16,985,000.00 (United States Dollars Sixteen million Nine Hundred Eighty-Five Thousand Only), as corrected and modified in accordance with the Instructions to Bidders is hereby selected as substantially responsive lowest evaluated bid.” Nepal Rastra Bank
Why China?
Today, all of Nepal’s banknotes are printed in China by the China Banknote Printing and Minting Corporation (CBPMC). Nepal Rastra Bank recently awarded the Chinese firm a contract worth nearly 17 million dollars to design and print 430 million pieces of the 1,000-rupee note. Nepal has limited domestic printing capacity, so it depends heavily on foreign partners. China’s advanced printing infrastructure, modern security features, and competitive pricing made it an attractive option. Moneycontrol
The reason is simple. China offers a combination of high-end technology and strict security at a relatively low cost. Its printing presses use watermarks, holographic threads, and color-shifting inks to prevent counterfeiting. The CBPMC has even developed a holographic security feature called “Colordance,” which makes it harder to forge banknotes and cheaper to produce them. Moneycontrol
CBPMC, global reach and industry context
Founded in 1948, the CBPMC is a state-owned giant that manages the printing of China’s own currency as well as those of several other nations. It operates multiple facilities across the country and employs tens of thousands of workers, including engineers, designers, and technicians. Its capacity to print large volumes of high-security currency notes gives it an edge over most competitors. Moneycontrol
China’s rise changed the global equation. In 2015, CBPMC acquired the banknote printing division of De La Rue, the world’s most trusted private printer. The acquisition gave Beijing access to advanced printing technologies, global clients, and a legacy brand. Through this deal, China extended its reach beyond Asia into Europe, Africa, and the Middle East, becoming the world’s most powerful player in the currency printing business. Moneycontrol
Regional and strategic implications
By gaining control of a major part of the global supply chain, China now wields quiet but significant influence over the financial infrastructure of many countries. For small nations like Nepal that depend on foreign partners for their currency, China’s role is no longer limited to economics. It reflects a growing strategic presence in South Asia’s financial systems, one that increasingly reduces India’s traditional influence in the region. Moneycontrol
Join the Discussion
- What impact could Nepal’s decision to award the contract to a Chinese state-owned printer have on Nepal–India relations and regional dynamics?
- Do you think cost and technology justify Nepal shifting to CBPMC, or do geopolitical risks outweigh the benefits?
- How should small countries balance security, cost and political sensitivity when choosing external suppliers for currency printing?
- What lessons can policymakers in the region learn from China’s growing role in the banknote-printing supply chain?