Published: Thu, August 16, 2018
Finance | By Loren Pratt

Is China Printing Indian Currency Without New Delhi's Permission?

Is China Printing Indian Currency Without New Delhi's Permission?

The Opposition was quick to seek a clarification from the government with Congress leader Shashi Tharoor in a tweet asking Union ministers Arun Jaitley and Piyush Goyal to clarify.

The report says that it was after Beijing proposed the Belt And Road Plan that it got contracts for printing Indian currency.

Earlier, South China Morning Post claims that China Banknote Printing and Minting Corporation has won contract to print Indian currency notes.

Two years later China began printing money for Nepal, and today foreign customers of China's industry now also reportedly include Thailand, Bangladesh, Sri Lanka, Malaysia, India, Brazil and Poland and possibly many others that have not yet been disclosed, a source in the corporation said.

China has been printing foreign currencies on a massive scale as more and more countries outsource money production in a bid to keep costs down.

A Chinese daily has claimed that a company there has been given the licence to print Indian currency.

In 2015, Chinese researchers won an worldwide innovation award for ColorDance, a new holographic feature that can significantly increase a paper currency's security at lower cost.

Reserve Bank of India (RBI) has for long maintained its stand that country's currency will only be printed inside the Indian territories. Chadha went on to dub the Modi government's demonetisation move as "wasteful and dubious" in making India a cashless economy and said that similarly, the decision of outsourcing the printing of Indian notes to China is "counter-productive and risky".

As per news website Money Control, the RBI has strongly denied the Chinese report.

Ironically for India, the report says, "most of the demand comes from participants in the Belt and Road Initiative".

Liu Guisheng, Chairman of China Banknote Printing and Minting Corporation, wrote in an article in May in China Finance, a bi-monthly journal run by China's central bank, that China obtained the first global commercial order for printing money from Nepal in 2015.

The corporation's president Liu Guisheng is quoted as saying that "the company had "seized the opportunities brought by the initiative" and "successfully won contracts for currency production projects in a number of countries including Thailand, Bangladesh, Sri Lanka, Malaysia, India, Brazil and Poland". China says over 60 countries have signed up for BRI investments. The Thiruvananthapuram MP tweeted that allowing China to print India's currency could have "disturbing national security implications".

Referring to the report, Mr Chadha said that an undisclosed source was quoted as saying that some governments have asked Beijing "not to publicise the deal because they are anxious such information could compromise national security or trigger unnecessary debates at home".

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