Nepal Issues New ₹100 Note Featuring Updated National Map

Nepal Issues New ₹100 Note Featuring Updated National Map

Why in News?

Recently, Nepal issued a new ₹100 currency note featuring its updated national map, which includes the disputed Kalapani, Lipulekh, and Limpiyadhura regions. India has rejected this portrayal, stating that Nepal’s unilateral inclusion of these territories does not reflect ground realities.

Details of Nepal’s New ₹100 Currency Note

• Nepal Rastra Bank issued the new ₹100 note on 27 November 2025. The note bears the date 2081 Bikram Sambat which corresponds to 2024 in the Gregorian calendar. The note carries the signature of former governor Maha Prasad Adhikari.
• In the centre background appears a faint green-coloured map of Nepal. The currency displays a revised national map that shows Kalapani, Lipulekh, and Limpiyadhura as parts of Nepal, following the map change that Nepal adopted in 2020. The front side of the note features Mount Everest and the Ashoka Pillar at Lumbini.
• According to NRB, other denominations (Rs 10, Rs 50, Rs 500, Rs 1000) do not carry the national map — only the Rs 100 note does.
• The notes were produced by the China Banknote Printing and Minting Corporation. Nepal printed about 300 million pieces of this denomination. The printing cost was reported at about $8.9 million. 

Historical Background of the Nepal–India Border Dispute

• Treaty of Sugauli: The British East India Company fought a war with Nepal from 1814 to 1816. The war ended with the Treaty of Sugauli in March 1816. The treaty fixed the Kali (Mahakali) River as Nepal’s western boundary in parts of the Himalaya. The treaty ceded large tracts of land to the British. This treaty remains the starting point of the modern boundary dispute. 

• Source of Kali River & Kalapani: Cartographers later disagreed about the true source of the Kali River, different maps named different headwaters. Nepal and India used those maps to support opposite claims. The village of Kalapani sits at the contested headwaters both countries now claim Kalapani. 

• 1950 Treaty of Peace: India and Nepal signed a formal treaty on 31 July 1950. The treaty promoted free movement and close cooperation and institutionalised political & economic ties. Over time the treaty became politically sensitive in Nepal. Many Nepali leaders felt the treaty gave India undue influence.

• Cold War Era: Nepal balanced relations with India and China during the Cold War. Nepal allowed India a large influence in the 1950s. Nepal then sought closer ties with China from the 1960s. Nepal began to assert its sovereignty more firmly in later decades.

• Local Administration: Both sides created local maps and administrative records over many decades. Government maps therefore showed different lines at different times. This patchwork of documents made formal border demarcation harder. 

• Lipulekh Road: India inaugurated a road to Lipulekh on 8 May 2020 to ease access to Kailash-Manasarovar. Nepal protested that the road lay through its claimed territory. Kathmandu called the move unacceptable. The road inauguration triggered renewed diplomatic friction.

• Nepal’s New Revision Map: Nepal’s parliament adopted a revised political map on 20 May 2020. The map included Limpiyadhura, Lipulekh and Kalapani, presenting the change as a reclaiming of historical rights. India protested the change as unilateral and without basis. The map revision therefore escalated the dispute to a diplomatic row. 

• India’s Diplomatic Response: India’s Ministry of External Affairs publicly rejected Nepal’s map on 21 May 2020. India said the move was unilateral and said historical facts and evidence did not support Nepal’s enlarged claim. India emphasised bilateral talks as the route to settle borders. 

Geopolitical Significance of Kalapani, Lipulekh & Limpiyadhura

• • Strategic Tri-junction: Kalapani, Lipulekh and Limpiyadhura lie at the meeting point of three countries — India, Nepal and China. This tri-junction gives these areas immense strategic value. Control over this region provides influence in the Himalayan highlands. The region’s geopolitical importance increases because of its proximity to Tibet (China), Nepal’s western Himalayas and India’s northern frontier.

• Gateway for Trade: The Lipulekh Pass has served as an ancient trade route between India (Uttarakhand) and Tibet (China). Traders historically used this pass to exchange wool, salt and other commodities. It also became a major route for pilgrims traveling to sacred sites such as Mount Kailash and Lake Mansarovar. That boosts commerce and pilgrimage and work as a corridor linking India and China. 

• Military-Strategic: Because of its altitude and terrain, Kalapani-Lipulekh region offers tactical advantage in Himalayan defence. India maintains permanent troop presence there, especially since the 1962 war with China. From Kalapani valley vantage, Indian forces can monitor movement across the Himalayan passes, including potential advances along the Tibetan border.

• National Sovereignty: Nepal claims the true source of Kali River lies at Limpiyadhura and India claims the source is at a spring near Kalapani. Thus the question of river source shapes the competing territorial claims. This makes the area geopolitically sensitive because water boundaries affect national sovereignty, territorial jurisdiction, and regional security.

Implications for India-Nepal Bilateral Relations

• Diplomatic Strain: Nepal issued a revised map in May 2020 and it has repeatedly raised the issue since then. The fresh act of printing the contested map on the NPR 100 note in November 2025 has renewed official friction. Because of this, diplomats will meet more often to manage disputes. This pattern may further make routine cooperation on other issues harder. 
• Cross-Border Trade: Traders in border districts can refuse currency that they see as offensive to national claims. Local trade across the northern border depends on trust and accepted tender. Reduced acceptance of currency can slow market transactions and customs processes may tighten. The result may be lower trade volumes and higher transaction costs for border communities. 
• Security & Border Management: India keeps forces in high altitude posts near Lipulekh and Kalapani for frontier security. Both sides may increase patrols to avoid surprises. Border management agencies may raise alerts and increase verification of movement. The emphasis on control may reduce easy cross-border movement for residents. 
• Regional Alignment: Nepal may seek deeper ties with other partners to balance pressure. China and other regional actors can gain diplomatic openings. Both capitals may factor great power dynamics into bilateral talks. The map issue can therefore feed broader regional competition.