China Firm Claims to Print Indian Currency, RBI Sources Deny

A Chinese firm claimed that several countries, including India, allowed China to print their currency.

A Chinese company had won contracts for currency production in countries that include India, Chinese media claimed. 

(Photo Courtesy: Dhiraj Singh/Bloomberg)

Have other countries, including India, allowed China to print India’s currency?

In an article titled “Why other countries are giving China a licence to print money”, it has been highlighted that India, along with several other countries, has allowed China’s state-owned firms to print India’s currency.

The article highlights that, China is printing foreign currencies on a huge scale, as Beijing seeks to increase its influence on the world economy and geopolitics.

“Since then, the company (China Banknote Printing and Minting Corporation) had seized the opportunities brought by the initiative (Belt and Road Initiative) and successfully won contracts for currency production projects in a number of countries including Thailand, Bangladesh, Sri Lanka, Malaysia, India, Brazil and Poland,” the South China Morning Post quoted president of a state-owned firm involved in printing Indian currency among several others.

The article sparked a conversation on Twitter where several raised doubts on the dubious deal allowing China to print India's currency, especially when the RBI has long-maintained that India's currency is printed only within the country.

Congress MP Shashi Tharoor tweeted that allowing China to print India's currency could have "disturbing national security implications".

RBI Sources Refute Claims

Terming the reports on China printing India's currency as "baseless", Subhash Chandra Garg, Secretary of Department of Economic Affairs, issued a clarification on Monday, 13 August, saying that no other country is involved in printing Indian currency.

“The reports about any Chinese currency-printing corporation getting any orders for printing Indian currency notes are totally baseless. Indian currency notes are being and will be printed only in Indian government and RBI currency presses.”

Subhash Chandra Garg, on behalf of Union Ministry of Finance

RBI sources had earlier told The Quint that the claims made by South China Morning Post (SCMP) were false. The sources also said that no other country prints ‌Indian currency.

The Quint has e-mailed the RBI for an official response and the article will be updated if and when they reply.

What Is the "Belt and Road Initiative"?

In 2013, Beijing launched the "Belt and Road" plan with nearly 60 countries from Asia, Europe and Africa which was a global development blueprint aimed at boosting economic growth with large-scale capital investment and infrastructure construction projects, the article in South China Morning Post explains.

Guisheng-led China Banknote Printing and Minting Corporation, the article claims, has seized number of opportunities for currency production projects, specifically.