11/23/2016 AnoverviewoftheevolutionofpapercurrencyinIndia|TheIndianExpress

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Home Research An overview of the evolution of paper currency inIndia

An overview of the evolution of

paper currency inIndia
Governments have, for centuries spent a large amount of time and resources
in the production of currency in a way that can best serve as the
representation of regional and later national pride and interests.

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Written by Adrija Roychowdhury | New Delhi | Updated: November 16, 2016 4:51 pm

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The Rupee 1 note was issued in 1949 which carried the emblem of the Lion Capital in Sarnath. (RBI
monetary museum)

Prime Minister Narendra Modis announcement on November 8 to withdraw

currency notes of denomination 500 and 1000 and the issue of new notes worth Rs
2000 and Rs 500 clearly left the country in a shock from which it will take a while to
recover. While analysts have poured in both criticism and admiration for the
governments move, both sides do agree on the historic nature of the
announcement. However, currency reforms like these are not exactly new. Since
the Republic of India took birth and even before, paper currency in the
subcontinent had been periodically transformed to reflect the needs of the time.

Watch video

Demonetisation:BanksProvideNewRs500Notes

Paper currency in India came into existence with the entry of European
entrepreneurs and particularly so with the establishment of financial institutions
like the General Bank of Bengal and Bihar, the Bank of Hindoostan and the Bank of
Bengal. Before paper currency, coinage was the normal form of currency and their
nature differed from region to region within India.

Be it coinage or paper, the nature and form of the currency is a lot more than just a
commodity used in exchange of goods and services. While purchasing power is

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definitely the foremost role played by currencies, governments have, for centuries
spent a large amount of time and resources in the production of currency in a way
that can best serve as the representation of regional and later national pride and
interests. Historians in fact use currency as an important source for the
understanding of historical processes.

British India

Before independence, the British government issued currency notes for India. The
princely states continued using individual currencies of their own, majority of
which were coins. While initially the presidency banks were entrusted with the
responsibility of producing paper currency across the British Indian domains, the
duty was later transferred to the Mint masters, the Accountant Generals and the
Controller of Currency.

The first set of notes issued by the British government were the Victoria portrait
series of denominations 10, 20, 50, 100 and 1000.

Victoria series- Rupees ten (RBI monetary museum)

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Victoria series- Rupees hundred (RBI monetary museum)

In response to several cases of forgeries, the Victoria series were withdrawn in 1867
and in its place were issued currencies on moulded paper with language panels
carrying languages of the regions in which they were circulated. These were called
the underprint series.

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Green underprint- rupees ve hundred (RBI monetary museum)

The exigencies of the First World War made it necessary to issue new notes of
smaller denominations. These notes were further replaced in 1923 with new notes
carrying the portrait of King George V. The Kings portrait continued to be used on
all notes issued by the British government in India till the countrys Independence.

Kings portrait series- Rupees fty (RBI monetary museum)

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Kings portrait series- Rupees ten thousand (RBI monetary museum)

The Republic of India

The birth of the Republic of India made it necessary for the newly formed
government to issue currencies that can wipe out the hitherto superiority of the
British empire and imprint upon monetary matters the mark of Indian freedom.
Therefore the portrait of King George V was removed and symbols of independent
India were printed on the new notes.

The Rupee 1 note was issued in 1949 which carried the emblem of the Lion Capital
in Sarnath.

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Government of India= Rupee one (RBI monetary museum)

New notes were introduced in 1953 which carried texts in Hindi and had images of
iconic architectural pieces in India like the Tanjore temple and the Gateway of
India.

Rupees ve thousand- Gateway of India (RBI monetary museum)

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Economic constraints of the 1960s led to the issue of smaller notes. From now and
later again in the early 1970s, the portrait of Mahatma Gandhi was printed on the
new notes.

Gandhi series- Rupees twenty (RBI monetary museum)

A new Mahatma Gandhi series notes were introduced once again in 1996 with
newer security features. Gandhi continues to be printed on all notes of the Indian
currency including the most recent introduction of Rs 2000 and Rs 500.

Gandhi series- Rupees ten (RBI monetary museum)

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Gandhi series- Rupees ve hundred (RBI monetary museum)

Gandhi series- Rupees one thousand (RBI monetary museum)

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New note of rupees two thousand

The last time old currencies were withdrawn in India was in 1978 when notes of Rs
1,000, Rs 5,000 and Rs 10,000 were removed and before that in 1946 when the
British government withdrew higher denomination notes in the aftermath of the
Second World War.

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IagreeonT&C

BALU
B todayis19112016,still,newfivehundreddenominationofINRhasnotavailablein
1715 banks!!iamasmallmiddleworkingclassfamily.therermillionscroresofpeopleof
my category. just imagine our sufferings/difficulties ...... 100 rupees notes r not
available.rs.2000denominationnotesravailable,what'stheuse,noshopkeepersr
accepting? what people like me would buy with Rs.2,000 notes? queues in banks r
unending.whetheriwldgotomybreadandbutterorstandinlongqueues?without
proper exercise, the govt. of the order come with such demonetization, truly, it
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11/23/2016 AnoverviewoftheevolutionofpapercurrencyinIndia|TheIndianExpress
proper exercise, the govt. of the order come with such demonetization, truly, it
'stabbed' back of small people of this country. what about daily wage earning
members?eventodayalsoinmumbai,queuesrlengthy....crowd...thegovt.ofthe
order must bring immediately new rupees five hundred denomination in full circular
andavailableinallbanks.rs.2000isincircularbutfornousewhennoshopkeeper/
vendoraccepting.rs.100andrs.50denominationnotesbelaunchedandcirculate
throughbanksothatpeopleofthiscountryalreadysufferingwillgetasighofrelief,
otherwise, situation would turn from bad to worse. although the demonetization is
goodforthehealthofthisgreatNation,however,unavailbilityofRs.100,Rs.50and
Rs. 500 notes would make the situation most worst. it is high time, the govt. must
takeimmediatestepstocurbthesituation.richmen,politicians,bureaucratsrnotat
allaffected,poorpeoplerstrugglingfortheirdaytodayroutines,thisaspectshould
betakenonthetopofthepriorityandthegovt.mustensurethattheneedfulisdone.
thankyou,

4daysago (0) (0) Reply(0)

In the long term, the GOI can, by adroit limits to circulation of of different value
4995 currency notes Rs/1 to Rs. 10,000/, can keep a vigilant eye all the time on black
money.Incidentally,excepttheSlno2,3,&4,Ihavehandledallthecurrencynotes.
Weweretoppoortosaveafeweachascollectorkeeps.

7daysago (0) (0) Reply(0)

SSubramaniam
SS Since majority of 12530 Crores of India's population are poor it is suggested that
2830 thattheonly5%ofhighendnotesmaybeprinted.

7daysago (0) (0) Reply(0)

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