Indian Gov't Denies Having Contracted Chinese Firm to Print Currency Notes

The South China Morning Post, a Chinese financial news publication, recently reported that a Chinese state-owned company, China Banknote Printing and Minting Corporation, had been contracted to print large quantities of international currencies including that of India.

The government of India has categorically denied a report by the South China Morning Post that a contract for printing Indian currency notes had been given to a Chinese firm. 

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Subash Chandra Garg, Secretary of Department of Economic Affairs of India was quoted by news agency ANI as saying that Indian currency notes are being and will be printed only in the special currency printing facilities owned by the government and Reserve Bank of India (RBI).

Reports about any Chinese currency printing corporation getting any orders for printing Indian currency notes are totally baseless. Indian currency notes are being & will be printed only in Indian Govt & RBI currency presses: Subash Chandra Garg, Secy, Dept of Economic Affairs pic.twitter.com/b3zmp662Ay

— ANI (@ANI) August 13, 2018

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The controversy arose after a report by a Chinese daily suggested that, despite domestic currency demand being at its lowest, China Banknote Printing and Minting Corporation had been functioning at full capacity to deliver on international contracts including to India.

#BREAKING — Sensational report in Chinese media. Report suggests how China is printing foreign currencies on a massive scale. China printing Indian currency too, says Chinese media pic.twitter.com/5Fdq4KYWqX

— News18 (@CNNnews18) August 13, 2018

​Some opposition parties have demanded clarification from the government after the report was published in the Chinese daily.

If true, this has disturbing national security implications. Not to mention making it easier for Pak to counterfeit. @PiyushGoyal @arunjaitley please clarify! https://t.co/POD2CcNNuL

— Shashi Tharoor (@ShashiTharoor) August 12, 2018

​Spokesperson for the Aam Admi Party (AAP) Raghav Chadha termed the revelation by the South China Morning Post as a big threat to India's national security and financial sovereignty.

Modi Government puts India's national security and financial sovereignity in danger by outsourcing printing of currency to China. Here is AAP's statement. pic.twitter.com/hapvlrGONr

— Raghav Chadha (@raghav_chadha) August 13, 2018