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De La Rue
Hey everyone!
If you have ever wondered how the money in your wallet gets made, or why some big international companies suddenly vanish from India’s currency scene, this post is for you.
De La Rue – the 200-year-old British giant that prints banknotes for over 140 countries – was once a trusted partner of the Reserve Bank of India (RBI).
Then, in one of the most significant currency controversies in modern Indian history, the company was effectively banned.
Even today, in December 2025, the blocklisting remains in place, despite persistent online rumors that India “brought them back.”
Let us walk through the entire story step by step, in plain language, with all the key facts, timeline, and the latest updates.
Who Is De La Rue And How Did They Become So Important To India?
De La Rue was founded in London in 1813, initially specializing in the printing of playing cards and postage stamps.
By the mid-1800s, they were making India’s first postage stamps under British rule and later became a global leader in secure printing.
They specialize in banknote paper, holograms, color-shifting threads, and other anti-counterfeit features that make fake money extremely difficult to produce.
For decades, India relied heavily on De La Rue for these materials.
At its peak, RBI contracts accounted for more than 30% of the company’s global profits; India was one of their largest customers.
2010 Quality Scandal That Started It All
The trouble began in 2009–2010 when RBI’s quality-control tests revealed serious issues with the security printing paper (SPP) supplied by De La Rue.
Some batches failed to meet the agreed-upon specifications, and worse still, specific test certificates were found to be falsified.
De La Rue’s own employees later admitted to altering documents. Currency paper is not ordinary paper – it contains cotton rag fibers, watermarks, and special chemicals.
Substandard paper makes counterfeiting much easier, so this was a significant security breach.
Finance Minister Pranab Mukherjee ordered an immediate inquiry. In late 2010, supplies were suspended.
By 2011, the Home Ministry had denied De La Rue security clearance, effectively blocking the company from future government contracts.
Security Thread Controversy
Even after the paper scandal, De La Rue still held a patent for a special color-shifting security thread used in high-denomination Indian notes.
In 2013, while the company was under scrutiny, former Finance Secretary Arvind Mayaram allegedly extended De La Rue’s exclusivity contract for three years without proper tender or clearance.
In 2023, the CBI filed an FIR against Mayaram for corruption, criminal conspiracy, and cheating, and conducted searches at his properties.
De La Rue responded that the allegations had no merit and confirmed they had not supplied India since 2016.
De La Rue Pakistan Connection
One of the most alarming factors was De La Rue’s supply of similar paper and features to those used by Pakistan’s currency printers.
Pakistan has long been accused of producing high-quality counterfeit Indian rupees to fund terrorism and destabilize the economy.
Intelligence reports showed fake notes with security features that closely matched genuine Indian ones.
Using the same supplier for both countries raised concerns about “dual supply,” making it easier for counterfeiters to replicate Indian notes with precision.
Although De La Rue denied printing for Pakistan or sharing paper, the risk was considered too high.
Panama Papers
In 2016, the Panama Papers leak revealed that De La Rue had paid commissions to an Indian agent to secure contracts.
The RBI advised continuing the blocklisting.
After this, no significant new contracts were awarded.
De La Rue Timeline
| Year | Event |
|---|---|
| 1800s – 1990s | De La Rue supplies postage stamps and later currency paper to India |
| 2009 – 2010 | Quality failures and falsified test certificates discovered |
| 2010 – 2011 | Supplies suspended; Home Ministry denies security clearance |
| 2013 | Alleged illegal extension of the security thread contract |
| 2016 | Panama Papers expose commissions; no supplies since |
| 2017 | Demonetisation rumors of De La Rue involvement debunked |
| 2023 | CBI FIR against Arvind Mayaram over 2013 deal |
| 2025 | Blacklisting still in place; De La Rue goes private under Atlas Holdings |
Why Rumors Persist That India Brought De La Rue Back?
During the 2016–2017 demonetisation rush, India needed to print billions of new ₹500 and ₹2,000 notes quickly.
Some media reports and social media posts claimed De La Rue was supplying paper or features.
Other rumors suggested that old machinery in Indian presses (supplied initially by De La Rue or its former subsidiary, KBA Giori) or trials for polymer notes were underway.
De La Rue repeatedly denied any involvement, stating in 2016–2017:
“We are not supplying paper for printing of Indian currency, and we are not associated with printing of currency in India at present in any form.”
Government statements confirmed that no new contracts were awarded between 2014 and 2016.
India’s Shift To Self-Reliance
Instead of bringing De La Rue back, India invested heavily in domestic production:
- Security Paper Mill in Mysuru (a joint venture) now produces most of the required paper.
- Four government presses (Nashik, Dewas, Mysuru, Salboni) handle the printing.
- Security features are sourced from multiple suppliers, including Crane Currency (USA), Giesecke+Devrient (Germany), Fabriano (Italy), and others.
This diversification reduces single-supplier risk and supports the “Make in India” initiative.
Comparison
| Aspect | Before Blacklisting (Pre-2010) | After Blacklisting (2016 Onward) |
|---|---|---|
| Paper & Features Supply | Major supplier (30%+ of profits) | None – no new RBI contracts |
| Security Clearance | Approved | Denied by the Home Ministry |
| India’s Strategy | Heavy reliance on imports | Self-reliance + diverse suppliers |
| Counterfeiting Risk | Higher due to shared suppliers | Significantly reduced |
| De La Rue’s India Business | Huge contracts | Limited to non-currency work via a small subsidiary |
Trivia
De La Rue once printed India’s very first postage stamps in the 1850s – long before it became a currency giant. Ironically, a company that began producing stamps for British India ultimately found itself at the center of one of India’s largest currency scandals after independence.
Final Thoughts
The De La Rue blocklisting serves as a powerful reminder of how seriously India takes the security of its currency.
Quality failures, potential corruption, and national security risks led to a decisive break, and India has since developed a more secure and self-reliant system.
As of December 2025, the blocklisting remains in place, and no major RBI contracts have been awarded to De La Rue.
The rumors of a “return” are simply not true.
At THOUSIF Inc. – INDIA, we love digging into these real-world stories and explaining them in simple, straightforward terms.
If you enjoyed this deep dive, check out our other articles on global finance, security printing, economic history, and more.
What surprised you most about this saga?
Drop a comment below, we would love to hear from you!
Thanks for reading, and stay curious!
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