Review on History of India Paper Money

Home , Bank of Hindostan, Mahatma Gandhi Series

International Journal of Grid and Distributed Computing Vol. 13, No. 1s, (2020), pp. 177-193

Review On History Of India Paper Money

Dr (Ms) Swaroopa Rani N. Gupta Department of Chemistry, Brijlal Biyani Science College Amravati, Maharashtra, India e-mail:[email protected]

Abstract:

Paper Money, in the modern sense, traces its origins to the late eighteenth century with the issues of private banks as well as semi-government banks. The Paper Currency Act of 1861 conferred upon Government of India the monopoly of Note Issue bringing to an end note issues of Private and Presidency Banks. Government of India continued to issue currency notes till the Reserve Bank of India was established on 1st April, 1935. When the one rupee note was reintroduced as a war time measure in August, 1940, it was issued by Government of India with the status of a coin.

Paper Money, as we know it today, was introduced in India in the late Eighteenth Century. This was a period of intense political turmoil and uncertainty in the wake of the collapse of the Mughal Empire and the advent of the colonial powers. The changed power structure, the upheavals, wars, and colonial inroads led to the eclipse of indigenous bankers, as large finance in India moved from their hands to Agency Houses who enjoyed state patronage. Many agency houses established banks. Among the early issuers, the General Bank of Bengal and Bahar (1773-75) was a state sponsored institution set up in participation with local expertise. Its notes enjoyed government patronage. Notes issued by the Bank of Bengal can broadly be categorised in 3 broad series viz: the 'Unifaced' Series, the 'Commerce' Series and the 'Britannia' Series. The early notes of the Bank of Bengal were unifaced and were issued as one gold mohur (sixteen sicca rupees in Calcutta) and in denominations deemed convenient in the early 19th Century, viz., Rs. 100, Rs. 250, Rs. 500, etc.

British India Issues commence with the Paper Currency Act of 1861 which gave the Government the monopoly of note issue in India. The management of paper currency across the geographical expanse of the Indian sub-continent was a task of considerable proportions. Initially the Presidency Banks were appointed as agents to promote the circulation of these notes in view of their existing infrastructure. The Act of 1861 authorised the Presidency Banks to enter into agreements with the Secretary of State for becoming agents for the issue, payment and exchange of promissory notes of the Government of India. The problem of redemption of these notes over vast expanses of the Indian sub- continent led to the concept of 'Currency Circles', where these notes were legal tender.

The first set of British India notes were the 'Victoria Portrait' Series these were unifaced, carried two language panels and were printed on hand-moulded paper manufactured at the Laverstock Paper Mills (Portals). The security features incorporated the watermark (GOVERNMENT OF INDIA, RUPEES, two signatures and wavy lines), the printed signature and the registration of the notes. British India Notes facilitated inter-spatial transfer of funds. As a security precaution, notes were cut in half. One set was sent by post. On confirmation of receipt, the other half was despatched by post. The Victoria Portrait series was withdrawn in the wake of a spate of forgeries and replaced by the unifaced 'Underprint Series' which were introduced in 1867. The Underprint Series notes were printed on moulded paper and carried 4 language panels (Green Series). The languages differed as per the currency circle of Issue. Language panels were increased to 8 in the Red Series. The improved security features included a wavy line watermark, the manufacturer's code in the watermark (the source of much confusion in dating), guilloche patterns and a coloured underprint. This series remained largely unchanged till the introduction of the 'King's Portrait' series which commenced in 1923. The introduction of small denomination notes in India was essentially in the realm of the exigent. Compulsions of the first World War led to the introduction of paper currency of small denominations. These notes first carried the portrait of King George V and were the precursors of the

International Journal of Grid and Distributed Computing Vol. 13, No. 1s, (2020), pp. 177-193

'King's Portrait' Series which were to follow. Regular issues of ‘King's Portrait’ Series carrying the portrait of George V were introduced in May, 1923 on a Ten Rupee Note. The King's Portrait Motif continued as an integral feature of all Paper Money issues of British India. Government of India continued to issue currency notes till 1935 when the Reserve Bank of India took over the functions of the Controller of Currency.

The Reserve Bank of India was formally inaugurated on Monday, April 1, 1935 with its Central Office at Calcutta. The Republic, however, was established on 26th January, 1950. In 1953, Hindi was displayed prominently on the new notes. With the advancement of reprographic techniques, traditional security features were deemed inadequate. It was necessary to introduce new features and a new 'Mahatma Gandhi Series' was introduced in 1996. A changed watermark, windowed security thread, latent image and intaglio features for the visually handicapped are amongst the new features.

This paper deals with review on History of India Paper Money which includes India paper money a retrospect 1770-1998; Early Issues - Unifaced Series, Commerce Series, Brittania Series; British India issues - Victoria Portrait Series, Underprint Series, Small Denomination Notes, King's Portrait Series; British India Reserve Bank issues; Republic India issues - Mahatma Gandhi Series; Other issues - Indo-French Issues, Jammu & Kashmir Issues, Hyderabad Issues, Emergency Issues Princely States Cash Coupons, Burma Issues, Persian Gulf Issues, Haj Issues.

Key Words : Unifaced Series, Commerce Series, Brittania Series, Victoria Portrait Series, Underprint Series, Small Denomination Notes, King's Portrait Series, British India Reserve Bank issues, Republic India issues.

1. Introduction

British India Issues commence with the Paper Currency Act of 1861 which gave the Government the monopoly of note issue in India. The management of paper currency across the geographical expanse of the Indian sub-continent was a task of considerable proportions. Initially the Presidency Banks were appointed as agents to promote the circulation of these notes in view of their existing infrastructure. The Act of 1861 authorised the Presidency Banks to enter into agreements with the Secretary of State for becoming agents for the issue, payment and exchange of promissory notes of the Government of India. The problem of redemption of these notes over vast expanses of the Indian sub-continent led to the concept of 'Currency Circles', where these notes were legal tender.

International Journal of Grid and Distributed Computing Vol. 13, No. 1s, (2020), pp. 177-193

INDIA PAPER MONEY A RETROSPECT : 1770-1998 [1]

Financial Instruments and 'Hundies' in India have a venerable history. Paper Money, in the modern sense, traces its origins to the late eighteenth century with the issues of private banks as well as semi- government banks (the Bank of Bengal, the Bank of Bombay and the Bank of Madras alluded to as the Presidency Banks).

The Bank of Bengal The Bank of Bombay The Bank of Madras

International Journal of Grid and Distributed Computing Vol. 13, No. 1s, (2020), pp. 177-193

Among the earliest issues were those by the Bank of Hindostan (1770-1832), the General Bank in Bengal and Bahar (1773-75, established by Warren Hastings), the Bengal Bank (1784-91), amongst others. Few of these notes survive. The Paper Currency Act of 1861 conferred upon Government of India the monopoly of Note Issue bringing to an end note issues of Private and Presidency Banks. Paper currency in India owed much to the intellectual stimulus and personal dynamism of Sir James Wilson, the first Finance Member in the Executive Council of the Viceroy of India. With the early death of Sir James, the task of issuing Government Paper Money in India devolved upon his successor Samuel Laing who substantially modified Wilson's original proposals.

Government of India continued to issue currency notes till the Reserve Bank of India was established on 1st April, 1935. When the one rupee note was reintroduced as a war time measure in August, 1940, it was issued by Government of India with the status of a coin. Government of India continued to issue Rupee one notes till 1994. The motifs appearing on Indian currency notes reflect the changing socio-cultural ethos and the world-view of the times: buccaneering mercantilism, colonial consolidation, domineering imperialism, the grandeur of empire, to the symbols of National Independence followed up by allegories of progress and finally in the latest series, reminiscing Gandhian values.

EARLY ISSUES [2]

Among the early issuers, the General Bank of Bengal and Bahar (1773-75) was a state sponsored institution set up in participation with local expertise. Its notes enjoyed government patronage. Though successful and profitable, the bank was officially wound up and was short lived. The Bank of Hindostan (1770-1832) was set up by the agency house of Alexander and Company was particularly successful. It survived three panic runs on it. The Bank of Hindostan finally went under when its parent firm M/s Alexander and Co. failed in the commercial crisis of 1832. Official patronage and the acceptance of notes in the payment of revenue was a very important factor in determining the circulation of bank notes. Wide use of bank notes, however, came with the note issues of the semi- government Presidency Banks, notably the Bank of Bengal which was established in 1806 as the Bank of Calcutta with a capital of 50 lakh sicca rupees. These banks were established by Government Charters and had an intimate relationship with the Government. The charter granted to these banks accorded them the privilege of issuing notes for circulation within their circles.

Notes issued by the Bank of Bengal can broadly be categorised in 3 broad series viz: the 'Unifaced' Series, the 'Commerce' Series and the 'Britannia' Series. The early notes of the Bank of Bengal were unifaced and were issued as one gold mohur (sixteen sicca rupees in Calcutta) and in denominations deemed convenient in the early 19th Century, viz., Rs. 100, Rs. 250, Rs. 500, etc.

Unifaced Series

Unifaced Notes of the Bank of Bengal

International Journal of Grid and Distributed Computing Vol. 13, No. 1s, (2020), pp. 177-193

The Bank of Bengal notes later introduced a vignette represented an allegorical female figure personifying 'Commerce' sitting by the quay. The notes were printed on both sides. On the obverse the name of the bank and the denominations were printed in three scripts, viz., Urdu, Bengali and Nagri. On the reverse of such notes was printed a cartouche with ornamentation carrying the name of the Bank. Around the mid nineteenth century, the motif 'Commerce' was replaced by 'Britannia'. The note had intricate patterns and multiple colours to deter forgeries.

Commerce Series Obverse and Reverse

Brittania Series Obverse and Reverse

International Journal of Grid and Distributed Computing Vol. 13, No. 1s, (2020), pp. 177-193

The second Presidency Bank was established in 1840 in Bombay, which had developed as major commercial centre. The Bank had a checkered history. The crisis resulting from the end of the speculative cotton boom led to the liquidation of Bank of Bombay in 1868. It was however reconstituted in the same year. Notes issued by the Bank of Bombay carried the vignettes of the Town Hall and others the statues of Mountstuart Elphinstone and John Malcolm.

Note issued by the Bank of Bombay

The Bank of Madras established in 1843 was the third Presidency Bank. It had the smallest issue of bank notes amongst Presidency Banks. The notes of the Bank of Madras bore the vignette of Sir Thomas Munroe, Governor of Madras (1817-1827). The other private banks which issued bank notes were the Orient Bank Corporation established in Bombay as the Bank of Western India in 1842. Its notes featured the Bombay Town Hall as vignette. The Commercial Bank of India established in 1845 in Bombay (also an Exchange Bank) issued exotic notes with an interblend of Western and Eastern Motifs. The bank failed in the crash of 1866. The paper currency Act of 1861 divested these banks of the right to note issue; the Presidency Banks were, however, given the free use of Government balances and were initially given the right to manage the note issues of Government of India.

BRITISH INDIA ISSUES [3]

British India Issues commence with the Paper Currency Act of 1861 which gave the Government the monopoly of note issue in India. The management of paper currency across the geographical expanse of the Indian sub-continent was a task of considerable proportions. Initially the Presidency Banks were appointed as agents to promote the circulation of these notes in view of their existing infrastructure. The Act of 1861 authorised the Presidency Banks to enter into agreements with the Secretary of State for becoming agents for the issue, payment and exchange of promissory notes of the Government of India. The problem of redemption of these notes over vast expanses of the Indian sub-continent led to the concept of 'Currency Circles', where these notes were legal tender.

International Journal of Grid and Distributed Computing Vol. 13, No. 1s, (2020), pp. 177-193

These Currency Circles increased in number as the Government progressively took over the work. The agency agreements with the Presidency Banks were finally terminated in 1867. The Management of Paper Currency was subsequently, in turn, entrusted to the Mint Masters, the Accountant Generals and the Controller of Currency.

Victoria Portrait Series The first set of British India notes were the 'Victoria Portrait' Series issued in denominations of 10, 20, 50, 100, 1000. These were unifaced, carried two language panels and were printed on hand-moulded paper manufactured at the Laverstock Paper Mills (Portals). The security features incorporated the watermark (GOVERNMENT OF INDIA, RUPEES, two signatures and wavy lines), the printed signature and the registration of the notes.

Rupees Ten Rupees Twenty Rupees

Hundred

British India Notes facilitated inter-spatial transfer of funds. As a security precaution, notes were cut in half. One set was sent by post. On confirmation of receipt, the other half was despatched by post.

Half note Underprint Series The Victoria Portrait series was withdrawn in the wake of a spate of forgeries and replaced by the unifaced 'Underprint Series' which were introduced in 1867. In deference to public demand, notes in the denomination of Rupees Five were introduced. Initially, notes were legally encashable only in the Currency Circle in which they were issued; however, between 1903 an 1911, notes of denomination 5, 10, 50 and 100 were 'universalised', i.e. were legally encashable outside the Currency Circle of Issue.

The Underprint Series notes were printed on moulded paper and carried 4 language panels (Green Series). The languages differed as per the currency circle of Issue. Language panels were increased to 8 in the Red Series. The improved security features included a wavy line watermark, the manufacturer's code in the watermark (the source of much confusion in dating), guilloche patterns and a coloured underprint.

This series remained largely unchanged till the introduction of the 'King's Portrait' series which commenced in 1923.

International Journal of Grid and Distributed Computing Vol. 13, No. 1s, (2020), pp. 177-193

Green Underprint - Rupees Five Hundred Green Underprint - Rupees Five Red Underprint - Rupees Fifty

Small Denomination Notes The introduction of small denomination notes in India was essentially in the realm of the exigent. Compulsions of the first World War led to the introduction of paper currency of small denominations. Rupee One was introduced on 30th November, 1917 followed by the exotic Rupees Two and Annas Eight. The issuance of these notes was discontinued on 1st January, 1926 on cost benefit considerations. These notes first carried the portrait of King George V and were the precursors of the 'King's Portrait' Series which were to follow.

Rupee One – Obverse Rupee One –Reverse Rupees Two and Annas Eight - Obverse

King's Portrait Series Regular issues of this Series carrying the portrait of George V were introduced in May, 1923 on a Ten Rupee Note. The King's Portrait Motif continued as an integral feature of all Paper Money issues of British India. Government of India continued to issue currency notes till 1935 when the Reserve Bank of India took over the functions of the Controller of Currency. These notes were issued in denominations of Rs 5, 10, 50, 100, 500, 1000, 10,000.

Rupees Fifty Rupees One Thousand Rupees Ten Thousand With the establishment of the Currency Note Press at Nasik in 1928, currency notes came to be progressively printed in India. By 1932 the Nasik Press was printing the entire spectrum of India currency notes. The improved security features were changed watermarks, intricate portrait designs and multicoloured printing.

BRITISH INDIA: RESERVE BANK ISSUES[3]

The Reserve Bank of India was formally inaugurated on Monday, April 1, 1935 with its Central Office at Calcutta. It began operations by taking over from the Government the functions hitherto performed by the Controller of Currency and from the Imperial Bank the management of Government Accounts and Public Debt. The existing Currency Offices in Calcutta, Bombay, Madras, Rangoon, Karachi, Lahore and Cawnpore became the branches of the Issue Department of the Bank. It was not

International Journal of Grid and Distributed Computing Vol. 13, No. 1s, (2020), pp. 177-193

then considered necessary to have an office in Delhi. Section 22 of the RBI Act, 1934, empowered it to continue issuing Government of India notes till its own notes were ready for issue. The Central Board of the Bank recommended that the Bank notes retain the general size, appearance and design of the existing notes, albeit with modifications.

Notes with the portrait of Edward VIII were scheduled for release in the summer of 1937. But Edward's heart had its reasons and his abdication, at levels mundane, delayed the Bank's issues to January 1938 when the first Five Rupee note was issued bearing the portrait of George VI. Rupees Five was first Note issued by Reserve Bank of India. This was followed by Rs 10 in February, Rs 100 in March and Rs 1,000 and Rs 10,000 in June 1938.

Rupees Five Rupees One Hundred

Rupees One Thousand Rupees Ten Thousand

The first Governor, Sir Osborne Smith did not sign any bank notes; the first Reserve Bank issues were signed by the second Governor, Sir James Taylor.

Sir Osborne Smith Sir James Taylor Sir C. D. Deshmukh

In August 1940, the one-rupee note was reintroduced, once again as a war time measure, as a Government note with the status of a rupee coin, in terms of the Currency Ordinance of 1940 (IV of 1940). The issuance of Rs 2 and Annas 8 was contemplated but Rs 2 was introduced instead on 3rd March , 1943.

International Journal of Grid and Distributed Computing Vol. 13, No. 1s, (2020), pp. 177-193

Rupee One Obverse Rupee One Reverse Rupees Two

During the war, Japanese Operations to destabilise Indian currency involved high quality forgeries, largely of Re 10 notes signed by Governor C.D. Deshmukh. This necessitated a change in the watermark and obverse design from the profile portrait of George VI to his full frontal portrait. As an added security feature, the security thread was introduced for the first time in India. The George VI series continued till 1947 and thereafter as a frozen series till 1950 when post independence notes were issued.

George VI Profile George VI Frontal

REPUBLIC INDIA ISSUES [4]

Throughout history, the right to Coinage and Currency and issues of sovereignty have been curiously conjoined, emotionally if not rationally; these issues stimulate debate even today. The transition of currency management from colonial to independent India was a reasonably smooth affair. Midnight, August 15, 1947 heralded Indian independence from colonial rule. The Republic, however, was established on 26th January, 1950. During the interregnum, the Reserve Bank continued to issue the extant notes. Government of India brought out the new design Re 1 note in 1949. Symbols for independent India had to be chosen. At the outset it was felt that the King's portrait be replaced by a portrait of Mahatma Gandhi. Designs were prepared to that effect. In the final analysis, the consensus moved to the choice of the Lion Capital at Sarnath in lieu of the Gandhi Portrait. The new design of notes were largely along earlier lines.

International Journal of Grid and Distributed Computing Vol. 13, No. 1s, (2020), pp. 177-193

Government of India - Rupee One Rupees Ten - King's Portrait Rupees Ten - Ashoka Pillar

In 1953, Hindi was displayed prominently on the new notes. The debate regarding the Hindi plural of Rupaya was settled in favour of Rupiye. High denomination notes (Rs 1,000, Rs. 5,000, Rs. 10,000) were reintroduced in 1954.

Rupees One Thousand - Tanjore Temple, Rupees Five Thousand - Gateway of India, Rupees Ten Thousand - Lion Capital, Ashoka Pillar The lean period of the early sixties led to considerations of economy and the sizes of notes were reduced in 1967. In 1969 a commemorative design series in honour of the birth centenary celebrations of Mahatma Gandhi was issued depicting a seated Gandhi with the Sevagram Ashram as the backdrop. Cost benefit considerations prompted the Bank to introduce Rs. 20 denomination notes in 1972 and Rs. 50 in 1975.

Rupees One Hundred Rupees Twenty Rupees Fifty

High denomination notes were once again demonetised in 1978 for the same reasons as the 1946 demonetisation. The 1980s saw a completely new set of notes issued. The motifs on these notes marked a departure form the earlier motifs. The emphasis lay on symbols of Science & Technology (Aryabhatta on the Rs 2 note), Progress (the Oil Rig on Re 1 and Farm Mechanisation on Rs 5) and a change in orientation to Indian Art forms on the Rs 20 and the Rs 10 notes. (Konark Wheel, Peacock). Management of Currency had to cope with the rising demands of a growing economy, together with a fall in purchasing power. The Rupee 500 note was introduced in October 1987 with the portrait of Mahatma Gandhi. The water mark continued to be the Lion Capital, Ashoka Pillar.

International Journal of Grid and Distributed Computing Vol. 13, No. 1s, (2020), pp. 177-193

Rupees Five Hundred Mahatma Gandhi Series With the advancement of reprographic techniques, traditional security features were deemed inadequate. It was necessary to introduce new features and a new 'Mahatma Gandhi Series' was introduced in 1996. A changed watermark, windowed security thread, latent image and intaglio features for the visually handicapped are amongst the new features.

Rupees Ten Rupees Fifty Rupees One Hundred

Rupees Five Hundred Rupees One Thousand

OTHER ISSUES [5]

By the end of the Nineteenth Century, India could broadly be divided into British India, the Princely States, the Portuguese Territories (Goa, Daman & Diu), and the French Territory of Pondicherry. While many Princely States were issuing their own coinage, only two viz., Jammu & Kashmir and Hyderabad actually issued Paper Currency. Both the Portuguese and French Territories issued Paper Money. Burma, where the Reserve Bank had an office at Rangoon, was politically separated from India on April 1, 1937. The Indo-Burma Monetary Arrangements provided for the RBI to continue to manage the currency of Burma. During the Second World War many petty Princely States issued emergency tokens which are alluded to as 'Cash Coupons' in lieu of coins. Emergency Money was also issued in Burma after the end of the Japanese occupation to facilitate exchange. Traditionally Indian money had enjoyed wide circulation in the Persian Gulf Region. India had also issued notes for circulation in the Persian Gulf region as well as special notes for Haj Pilgrims.

Indo-French Issues The Portugese thwarted early French designs to establish trade interests in India and the East. In 1664, Jean-Baptiste Colbert, the French Minister of Finance succeeded in establishing the first viable French Company (the French East India Company) during the reign of Louis XIV. The company established its factory at Surat in Western India and acquired a foothold in Southern India by acquiring Pondicherry in 1674. The disintegration of the Mughal Empire and the rivalry of local powers that strove to fill the vacuum, provided fertile ground for the English and the French to precipitate the Anglo-French struggle in India. As a result, the French lost most of their territories. The French territories were transferred to the Indian Union. De facto transfer of Pondicherry took place on 1st November, 1954 and de jure transfer on 28th May, 1956. Banque De l'Indochine issued paper money for the French in India, under decrees, which find mention on the notes. The earliest 'Roupie' denominated notes were issued in 1898. The Roupie consisted of 8 Fanons and one Fanon was

International Journal of Grid and Distributed Computing Vol. 13, No. 1s, (2020), pp. 177-193

equivalent to two annas. These were in the denomination of 50 and 10. Notes of One Roupie were issued immediately after the First World War. New notes of 50 Roupies carried the bust of Dupleix, who founded the French Empire in India. These notes continued to be in circulation till they were replaced by Indian currency in 1954. [6]

Jammu & Kashmir Issues On the decline of the Mughal Empire, Kashmir was annexed by the Afghans and later in 1819 by the Sikhs and in 1845 by the British. In 1846, Gulab Singh was confirmed the Feudatory Chief of Jammu & Kashmir by the British. In 1947, the Maharaja opted to Merge with the then Dominion of India. Paper Money was issued sometime in 1877 in the reign of Maharaja Ranbir Singh on watermarked paper. The notes were not very popular and were in circulation for a very short period. The notes carried the 'Sun' motif of the Dogra family.[7]

International Journal of Grid and Distributed Computing Vol. 13, No. 1s, (2020), pp. 177-193

Hyderabad Issues The Princely State of Hyderabad was founded around 1724 when Mir Qamar-ud-Din, the Mughal Viceroy of the Deccan, assumed independence under the title of Asaf Jah and founded the dynasty of the Nizams of Hyderabad. In the post 1857 era, the state of Hyderabad was one of the largest Princely States in India and later came to be known as the 'Dominion of His Exalted Highness, the Nizam'. The State which covered territories presently included in Andhra Pradesh, Maharashtra, and Karnataka was assimilated into the Indian Union. In matters of currency and coinage, the coins of the Nizams were issued in the name of the Mughal Emperor till 1858. Thereafter, they were struck independently and the new coins were termed the 'Hali Sicca', i.e., the current coins. Where paper currency was concerned, the Government of Hyderabad had made several state led efforts to organise private bankers and local 'saukars' in the Dominion to set up a banking company which could issued paper money, amongst other activities. These attempts to issue paper currency proved abortive, in the wake of British resistance to Indian States issuing paper currency. The exigency of the First World War, the Indian and Hyderabad contributions to British war effort, and an acute shortage of silver on the subcontinent led the Dominion to get its way in 1918 and paper currency was issued under the Hyderabad Currency Act. Notes were issued in denominations of Rupees 100 and Rs 10. The currency was designated the Osmania Sicca and the notes were printed by Messrs Waterlow and Sons. Rupee One and Rupees Five notes were issued subsequently in 1919 and Rupees One Thousand notes were issued in 1926. After the setting up of the India Currency Notes Press at Nasik, Hyderabad notes came to be printed there for reasons of economy and security. Hyderabad acceded to the Indian Union after police action. The Osmania Sicca was demonetised in 1959. With the reorganisation of states on a linguistic basis the State of Hyderabad ceased to exist. [8]

Rupee Five Note (Obverse & Reverse)

Rupee Ten Note (Obverse & Reverse)

International Journal of Grid and Distributed Computing Vol. 13, No. 1s, (2020), pp. 177-193

Emergency Issues Princely States : Cash Coupons The Second World War led to a diversion of resources into the war effort. The Mints were no exception and their capacity was increasingly used to mint coins for "Imperial Purposes". By 1942, an acute scarcity of small coins was felt throughout India. While British India managed with postal surrogates, petty princely states in Western India like Balvan, Bikaner, Bundi, Gondal, Indergadh, Junagadh, Jasdan, Kutch Mengni, Muli, Morvi, Mangrol, Nawanagar, Nawalgarh Palitana, Rajkot, Sailana, Sayla, Vithalgadh, issued what are alluded as Cash Coupons to meet the shortage. Most Cash Coupons were printed crudely on press board. Their place in the history of Indian Paper Money is in the realm of exigent money (Emergency issues). Incidentally, only two princely states had issued paper currency - Jammu & Kashmir in 1876 and Hyderabad commencing from 1918. While the Government of Kutch had prepared specimens of currency notes, these were not issued. [9]

Bundi (Now in Rajasthan) Bikaner (Now in Rajastan)

Junagadh State (Now in Gujarat) Mengni (Now in Gujarat) Nawanagar (Now in Gujarat)

Sailana State (Now in Madhya Pradesh) Sayla State (Now in Gujarat)

Burma Issues One of the curiosities of Note issue history is that the Reserve Bank of India issued notes that were not legal tender in India. Rangoon, the capital of Burma, was one of the original currency circles of the Office of the Controller of Currency. Burma separated from India in 1938; however, the Reserve

International Journal of Grid and Distributed Computing Vol. 13, No. 1s, (2020), pp. 177-193

Bank of India acted as Banker to the Government of Burma and was responsible for note issue in terms of the Burma Monetary Arrangements Order, 1937. In May 1938 the Bank issued distinctive Burma notes which were not legal tender in India. June 1942 saw the occupation of Burma by Japanese which lasted till 1945. Thereafter, monetary matters were looked after by the British Military Administration of Burma. The Reserve Bank recommenced its Rangoon Office in 1945 and carried on functioning as banker to the Government of Burma till April 1, 1947. [10]

Reserve Bank of India, Rangoon Office Notes issued by Reserve Bank of India for Burma

Persian Gulf Issues The Indian Rupee and consequently the paper money issues traditionally enjoyed wide currency in the Persian Gulf. On presentation by banks in these areas to the Reserve Bank, these notes were redeemable in foreign currency equivalent. On achieving independence, India started of with a comfortable foreign exchange position. The quest for development and the demands of 'catching up' laid considerable stress on the foreign exchange position. The scarcity situation that ensued led to possibilities of exploiting the traditional currency arrangements with the Gulf. To obviate or at least mitigate malpractices, which such an arrangement could give rise to, a separate series of notes exclusively for circulation in the Gulf (Kuwait, Bahrain, Qatar, and the Trucial States (now the UAE) were issued by the Indian Government and the Reserve Bank of India in the 1950's. The notes retained the contemporary design but were different in colour and carried the prefix 'Z'. The notes were issued in the denominations of Rupee One, Rupees Ten and Hundred and were redeemable only at the Bombay office of issue. As the Gulf States issued their own currency, these notes were withdrawn over a period of time from the early 1960's and ceased to be used around 1970. [11]

Haj Issues The Indian Government also issued notes for the use of the Haj Pilgrims from India in Saudi Arabia. These notes were issued in denominations of Rupees Ten and Hundred, and had the word HAJ inscribed on the obverse. The Serial Number of the notes was prefixed with the letters 'HA'. The notes were discontinued when the notes meant for circulation in the Gulf States were withdrawn. [12]

International Journal of Grid and Distributed Computing Vol. 13, No. 1s, (2020), pp. 177-193

References

[1] https://rbi.org.in/Scripts/pm_papermoney.aspx [2] https://rbi.org.in/Scripts/pm_earlyissues.aspx [3] https://rbi.org.in/Scripts/pm_britishindia.aspx [4] https://rbi.org.in/Scripts/pm_republicindia.aspx [5] https://rbi.org.in/Scripts/pm_others.aspx [6] https://rbi.org.in/Scripts/pm_indofrench.aspx [7] https://rbi.org.in/Scripts/pm_jammukashmir.aspx [8] https://rbi.org.in/Scripts/pm_hyderabad.aspx [9] https://rbi.org.in/Scripts/pm_cashcoupons.aspx [10] https://rbi.org.in/Scripts/pm_burma.aspx [11] https://rbi.org.in/Scripts/pm_persiangulf.aspx [12] https://rbi.org.in/Scripts/pm_haj.aspx