Indian regions are shown on the Nepal map of the banknote, according to EAM

On Friday, Nepal declared the creation of a new Rs 100 banknote with a map of the disputed areas of Lipulekh, Limpiyadhura, and Kalapani, which India has already labeled as “artificial enlargement” and “untenable.”

TFD – Delve into the escalating diplomatic tensions triggered by Nepal’s decision to introduce a new banknote depicting disputed territories. Uncover the political intricacies and international ramifications of this bold governmental move.

After the areas of Kalapani, Lipulekh, and Limpiyadhura were included in Nepal’s new map, which caused relations with India to deteriorate four years later, the administration in Kathmandu has decided to release a Rs. 100 banknote that shows the country’s map with the areas controlled by India.

According to Rekha Sharma, the Minister of Communication for the Nepalese government, the decision about the new currency note was made on Thursday during a cabinet meeting that was presided over by Prime Minister Pushpa Kamal Dahal, also known as “Prachanda.

India responded sharply to Kathmandu’s decision on Saturday, with External Affairs Minister S Jaishankar stating that Nepal’s action will not alter the situation or the ground reality.

Jaishankar stated, “Our position is very clear,” when addressing Bhubaneswar media representatives. Through an established framework, we are holding conversations with Nepal over our boundary issues. They unilaterally implemented some actions on their end during that time.

Following the opening of a new road in May 2020 by Delhi connecting Dharchula to Lipulekh on the Mansarovar Yatra route, relations between India and Nepal deteriorated. This infuriated the Kathmandu government at the time, led by Prime Minister KP Sharma Oli, and they produced a new map of Nepal that included an additional 370 square kilometers at the triangular intersection of China, India, and Nepal, which India claims 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. There was a brief communication breakdown between the two countries following the passing of the Bill and the new map.

When the Oli administration was faltering, China attempted to stabilize it. However, Oli’s government ultimately fell apart, and he was forced to step down in July 2021 after Nepal’s Supreme Court restored the country’s parliament.

In contrast to 2020, when all Nepali parties agreed to release the revised map, the Prachanda government’s most recent move has been greeted with skepticism and criticism domestically. It has been referred to as “unwise” and “provocative” by a few previous ambassadors and governors of the central bank of Nepal.

The central bank of Nepal, Rastra Bank, will receive the cabinet decision, and it could take up to a year for the new note to be created. To issue quality notes, the central bank will need to release tenders.

Former Rastra Bank governor and President Ram Chandra Poudel’s economic advisor Chiranjibi Nepal stated, “The government’s decision has come at the most inappropriate time and without thinking of its larger implications.” While Nepal and India have territorial disputes, it would be foolish to publish a map on money that differs from what international organizations, including two neighbors, have acknowledged.

“The decision of the government is too provocative and uncalled for,” a former Nepali ambassador stated.