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Nepal map on currency note to have Indian areas, EAM speaks out

Bhaag Viru Bhaag

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Nepal on Friday announced the printing of a new Rs 100 currency note with a map that shows the contentious territories of Lipulekh, Limpiyadhura and Kalapani, already termed as “artificial enlargement” and “untenable” by India.​


Four years after ties with India dived when Nepal included the areas of Kalapani, Lipulekh and Limpiyadhura in its new map, the government in Kathmandu has decided to come out with a Rs-100 currency note that depicts the country’s map with the areas under Indian control.

The decision on the new currency note, according to Nepal government spokesperson and Minister of Communication Rekha Sharma, was taken Thursday at a meeting of the cabinet chaired by Prime MinisterPushpa Kamal Dahal ‘Prachanda’.

Kathmandu’s decision drew a sharp response from India Saturday with External Affairs Minister S Jaishankar saying that Nepal’s move will not change the situation or the reality on the ground.

Speaking to media persons in Bhubaneswar, Jaishankar said, “Our position is very clear. With Nepal, we are having discussions about our boundary matters through an established platform. In the middle of that, they unilaterally took some measures on their side.”

Relations between India and Nepal saw a slide after Delhi’s inauguration of a new road in May 2020 from Dharchula to Lipulekh on the Mansarovar Yatra route. This angered the then government in Kathmandu – KP Sharma Oli was Prime Minister then – which came out with a new map of Nepal, adding to it an area of 370 sq km at the tri-junction of Nepal, India and China which India maintains is its territory.

A Constitution amendment Bill was passed by Nepal’s parliament to legitimise the alteration to the country’s map with the addition of Kalapani, Lipulekh and Limpiyadhura. The passage of the Bill and the new map led to a temporary breakdown of communication between the two countries.

China tried to come to the rescue of the Oli government when it was tottering. But Oli’s government collapsed eventually and he had to resign in July 2021 following the reinstatement of Nepal’s parliament by its Supreme Court.

Unlike 2020, when the new map was brought out with the consensus of Nepal parties, the Prachanda government’s latest decision has met with scepticism and criticism at home. Some former diplomats and former Governors of the Nepal central bank have called it “unwise” and “provocative”.

The cabinet decision will be sent to the Rastra Bank, Nepal’s central bank, which may take up to a year to get the new note printed. The central bank will have to come out with tenders for printing quality notes.

Chiranjibi Nepal, former Governor of Rastra Bank and economic advisor to President Ram Chandra Poudel, said, “The decision of the government has come at the most inappropriate time and without thinking of its larger implications. Nepal being in dispute with India over certain parts of territory is one thing, but printing in the currency a map that is different from what the international bodies, including two neighbours, have recognised is unwise.”

A former Nepal diplomat said, “The decision of the government is too provocative and uncalled for.”

 
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Powerful leader Shri Jumlendra Modi Ji should teach Nepal a lesson here. How dare they include Indian areas in their map. Have heard Internet services in Nepal were disrupted due to this.

Can you confirm it? BJP spokesperson @cricketjoshila :inti
 
A protest has erupted in Nepal’s Birgunj town, which borders India, against a government directive to impose customs duties on goods valued above NRS 100 (around Rs 63) brought in from India. Locals say the move has sharply increased the cost of essential daily items and disrupted traditional cross-border trade patterns.

The unrest comes amid tighter monitoring by security agencies along Nepal’s southern border, which authorities say is aimed at curbing revenue leakage and informal imports. Residents, however, argue that the new enforcement has turned routine movement into a burden.

Border tensions in Birgunj
People in border areas frequently travel to Indian markets to buy food items, clothing, fertilisers and household goods, citing better availability and prices.

Whatever the rituals are performed here (Nepal) from birth to death, we bring all the essentials from there," a protester told ANI. “Even the fertilisers which the Government of Nepal at times is not able to provide on time, we bring them from there."

“Now the situation has turned different; it is an unannounced blockade," the protester added.

Crackdown and political backlash

The Armed Police Force (APF) has begun strictly enforcing the rule, requiring duty payments on all goods exceeding NRS 100. Joint monitoring teams involving customs, police and revenue officials have increased inspections at secondary border points, leading to long queues and frequent checks of travellers’ belongings.

Authorities maintain that the policy is not new, but its enforcement has been tightened to ensure compliance with existing customs laws and reduce smuggling.

Nepali officials said the government is following a “zero-tolerance approach to prevent illegal imports in customs areas."

However, the measures have triggered political criticism. The opposition Nepali Congress has called for the immediate withdrawal of the decision, calling it as “anti-people and insensitive" at a time of rising inflation. The party warned that the move disproportionately affects low-income households in border districts who rely on cheaper goods from India.

Tensions have also been fuelled by additional restrictions, including tighter rules on Indian-registered vehicles entering Nepal. Residents in Madhesh province say the combined measures are disrupting daily life and cross-border mobility.


 
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