Nepal's NPR 100 Note Sparks Outcry: Diplomats Caution Against Fueling Nationalism

Nepal’s new Rs 100 note shows disputed territories claimed by India. Diplomats urge restraint, warning overreaction could fuel nationalism and strain India-Nepal ties.

Nepal’s issuance of a new NPR 100 banknote featuring a revised map that includes the disputed Kalapani, Lipulekh, and Limpiyadhura territories has once again drawn sharp attention from India and the diplomatic community.

The updated note, which bears the signature of former Governor Maha Prasad Adhikari and is dated 2081 BS (2024), continues a controversy that first erupted in May 2020 when the K P Sharma Oli-led government released a political map showing these areas as part of Nepal. That map was later endorsed by the Nepalese Parliament, prompting strong objections from New Delhi.

India had at the time called the map a “unilateral act” and warned Kathmandu that such “artificial enlargement” of territorial claims would not be acceptable.

“Unnecessary and Unfortunate,” Say Indian Diplomats

Former Indian diplomat K P Fabian described Nepal’s move as “most unfortunate, and more importantly, unnecessary.” He emphasized that territorial disputes should be resolved through dialogue rather than symbolic gestures like currency notes.

“If Nepal had the conviction that a part of what is Indian territory is part of Nepalese territory, then Nepal should engage with India diplomatically, not just put an updated map on its currency. That is the best way to resolve problems, especially with neighbours. Nepal had no business to do it… Perhaps the Chinese, and even Pakistan, have been prompting Nepal to do this… Nepal has done something foolish in terms of its own interest,” Fabian told ANI.

Experts Urge Caution and Restraint

Robinder Sachdev, a foreign affairs expert in Delhi, offered a more measured perspective. He noted that the new note is a continuation of Nepal’s 2020 map revision and warned that overreacting could worsen the situation.

“I see this as a logical continuation of their first step in which, in 2020, they included these territories in their map. These NPR 100 notes in circulation carry the map of Nepal. Logically, the new map of the country will be represented on the NPR 100 notes… The whole country is in a political turmoil. There is an interim government. The Indian reaction to it should not be much louder or rhetorical, otherwise, the political parties in Nepal will turn it into an issue of nationalism, especially those who are anti-India will gain more currency and will try to obtain political benefit from this controversy,” he said.

Calls for Diplomacy from Nepal

Voices from Nepal stressed the importance of dialogue. Former Nepal Law Minister Bahadur Pradhan highlighted that diplomatic channels are the most appropriate means to address cross-border issues.

“Our thinking is that diplomatic channels are the best way to resolve any issues related to relations between the two countries. We don't have an alternative. We consider it appropriate to be friends with our neighbour… We say that it's absolutely necessary to maintain good relations with India,” Pradhan told ANI.

Political Reactions in India

Congress leader Pawan Khera described Nepal’s move as “absolutely shocking” and called for a decisive Indian response. 

“The government of India needs to act smart and tough. Where is the response from the government of India?” he said, reflecting public frustration over the perceived lack of immediate action.

What the New NPR 100 Note Looks Like

According to NRB officials, the new NPR 100 note carries several distinctive features. Mt Everest is depicted on the left side, while a watermark of Nepal’s national flower, the Rhododendron, sits on the right. At the centre is a faint green map of Nepal, updated as per government decision.

“The map was already present in the old NRP 100 banknote, and it has been revised as per the government’s decision,” an NRB spokesperson clarified on Thursday. Among all Nepalese currency denominations—including NRP 10, NRP 50, NRP 500, and NRP 1,000—only the NRP 100 note bears the country’s map.

The back side features a horned rhino, alongside a security thread and an embossed black dot to assist visually impaired citizens. The Ashoka Pillar, accompanied by the text “Lumbini, the birthplace of Lord Buddha,” is printed near the map.

Nepal shares a border of over 1,850 km with five Indian states: Sikkim, West Bengal, Bihar, Uttar Pradesh, and Uttarakhand.

A Flashpoint in Nepal-India Relations

The new Rs 100 note may appear small, but its symbolism is enormous. By featuring disputed territories on a national currency, Nepal has reignited a debate that touches on sovereignty, nationalism, and regional geopolitics. For India, the challenge lies in responding without escalating tensions, while for Nepal, the note is both a domestic political signal and an assertion of territorial claims.

As experts in both countries weigh in, the coming weeks may determine whether this currency note becomes a diplomatic irritant or a manageable flashpoint in the centuries-old relationship between the two Himalayan neighbours.