Evolution of Indian Banknotes

Background 

King George III, He was ruling Great Britain in between 1760-1820. King George IV, He was the successor of George III and reigned between, 1821-1830. India was controlled by the traders of East India Company. The British East India Company was an English and later (from 1707) British joint-stock company formed for pursuing trade with the East Indies but which ended up trading mainly with the Indian subcontinent. The East India Company traded mainly in cotton, silk, indigo dye, salt, saltpetre, tea and opium. The Company was granted a Royal Charter in 1600, making it the oldest among several similarly formed European East India Companies. Shares of the company were owned by wealthy merchants and aristocrats. The government owned no shares and had only indirect control. The Company eventually came to rule large areas of India with its own private army, exercising military power and assuming administrative functions. Company rule in India effectively began in 1757 after the Battle of Plassey and lasted until 1858 when, following the Indian Rebellion of 1857, the Government of India Act 1858 led to the British Crown assuming direct control of India in the new British Raj. 

Banks who issued currency notes between 1800 to 1861 

Bank of Bengal, 1809-1921. The earliest currency notes were issued by this bank. Earliest date recorded on a banknote of 500 Sicca Rupees is 1810. This bank monopolized the ‘Currency Chest’ Mechanism in the Bengal Presidency. Later merged with two other presidency banks (Bank of Bombay and Bank of Madras) to form Imperial Bank of India in 1921. The name later in 1955 changed to State Bank of India. Bank of Bengal on the Hoogly River (Calcutta, above picture). Pictured in 1900-1910. Contributed by: Herbert A. French in 1947 to the National Photo Company London. 

Bank of Bengal official seal. Image Curtsey: SBI Musuem Kolkata

1871 Bank of Bengal share certificate. This certificate was issued to W.M. Beaufort Esquire as capital stock of the bank of one thousand Company’s Rupees.

Banknotes of Bank of Bengal (1809-1861) 

Bank of Bengal, 250 Sicca Rupees, Type 1, Signed by Henry Tyler (Secretary & Treasurer) of the bank. Dated 22nd October 1813. Uniface Series. RR/KJ Guide No. 1A.3.1.1 

Bank of Bengal, Type 3, 100 Sicca Rupees, Dated 24th March 1825, Signed by H. Henderson, (Obverse)

RR/KJ Guide No. 1A.3.3.4

Bank of Bengal, 10 Sicca Rupees, Dated 21st April 1836. Type 4, Signed by H. I. Lee. RR/KJ Ref. Guide No. 1A.3.4.1

Bank of Bengal, 50 Sicca Rupees, Dated 10th August 1835, Type 6, Signed by H. I. Lee. RR/KJ Guide No. 1A.3.6.5

Bank of Bengal, 100 Sicca Rupees, Dated 22nd Nov. 1833, Type 6, Signed by H. Henderson. RR/KJ Guide No. 1A.3.6.X 

 

King William IIII of England, Painted by Sir Martin Archer Shee in 1833. He reigned between 1831-1837. His signature is also shown above. 

Queen Victoria was crowned in 1837 and her rule lasted till 1901. Currency Notes were regulated in her age in 1861 by the first Currency Act of India. The above photo of the queen is the pictured around 1892. Signature of the queen also depicted. Image curtsey: Wikipedia.

Bank of Bengal, 100 Company’s Rupees, Dated 15th March 1852. Type 7, Signed by H. I. Lee. RR/KJ Guide No. 1A.3.8.6. 

Bank of Bengal, 10 Rupees, Type 9, Signed by H.I. Lee and G.W. Moultrie. Dated 15th April 1853. RR/KJ REF. GUIDE NO. 1A.3.9.1. 

Denomination - 50 Company Rupees. Date of Issue: 15 April 1853 Withdrawn: 1861. RR/KJ REF. GUIDE NO. 1A.3.9.5. 

Type 10, Bank of Bengal, 31st Aug. 1857, 10 Rupees. RR/KJ REF. GUIDE NO. 1A.3.10.1. Britannia Series 10 Rupees Currency Note issued in the Mutiny year in 1857. 

Bank of Bengal early officers pictured around 1850s. Image Curtsey: Superstock.com 

Bank of Bombay (1840-61) 

The second Presidency Bank was established in 1840 in Bombay, called as; BANK OF 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. Currency Notes issued by the Bank of Bombay carried the vignettes of the Town Hall and others the statues of Mountstuart Elphinstone and John Malcolm. Image Curtsey: RBI Monetary Museum. 

Bank of Bombay, 10 Rupees, Type 4, Issued on 1st Nov. 1860, RR/KJ REF. GUIDE NO. 1B.1.3.1 with prefix A. 

Mountstuart Elphinstone was an English statesman and historian. He was born in 1779 at Scotland and died in 1859. He joined the Bengal civil service in 1795, was ambassador to the Afghan court in 1808, was resident at the court of Poonah from 1810 to 1817, and was British commissioner to that province from 1817 to 1819, when he became governor of Bombay. During a government of seven years he established a code of laws, lightened taxes, and paid great attention to schools and public institutions. He resigned in 1827. A college established by the natives was called after him Elphinstone College. He was the author of an Account of the Kingdom of Cabul and its Dependencies (1815), and a History of India (1841). He was offered the governor-generalship of India in 1835, and afterwards that of Canada, both of which he declined. He was depicted on the banknotes of Bank of Bombay along with Sir John Malcolm.

Major-general Sir John Malcolm (2 May 1769 – 30 May 1833) was a Scottish soldier, statesman, and historian. His statue can be seen in Town Hall of Bombay. He was depicted on the banknotes of Bank of Bombay. 

Town Hall Bombay (It is also Asiatic Society) seen in 1900. Town Hall is depicted on the later issues of Bank of Bombay banknotes. The Marble statues of ex-governors are also located inside the building. 

Bank of Madras (1843-61) 

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 postcard shows the bank in 1900s. 

Inside of Bank of Madras

Bank of Madras, 15 Rupees currency note. This is a replica of the original banknote. Engraved in 1848. Printed by Perkins, Bacon & Co. London 

The statue of Thomas Munro is an equestrian statue of Thomas Munro, 1st Baronet, Scottish army commander and Governor of Madras from 1820 to 1827, located in the city of Chennai, India. The bronze statue sculpted by Francis Chantrey in the United Kingdom in 1834 and shipped to Madras in 1839, is one of the popular landmarks in Chennai. The absence of stirrups is one of the peculiarities of the statue and for this reason; it is also referred to as "The Stirrupless Majesty". This statue was used as vignette on the banknotes issued by Bank of Madras. 

King Edward VII, reigned between 1902-1910.

Government of India issued currency notes in India from 1861 to 1935. In his reign no portrait notes were issued. Image curtsey: Wikipedia.

Uniface Series. They were issued with green and red underprints. The above shown banknotes were issued in 1916 and 1919 with dates. 

KING GEORGE V REIGNED BETWEEN 1911-1936. FOR THE FIRST TIME IN INDIA, PORTRAIT NOTES WERE ISSUED IN 1917 (ONE RUPEE NOTES WERE FIRST INTRODUCED IN INDIA). IT IS ALSO KNOWN THAT FEW QUEEN VICTORIA PORTRAIT NOTES WERE PRINTED BETWEEN 1858-1864. 

The lead statue of King George V in George Town. This same portrait is observed as side profile portrait on banknotes between 1917 to 1935. Image Curtsey: The Hindu. 

The three presidency banks viz; Bank of Bengal, Bank of Bombay and Bank of Madras merged in 1921 to form Imperial Bank of India. The seal of Imperial Bank of India. Image Curtsey: SBI Museum. 

Imperial Bank of India share certificate of one thousand Rupees in 1936. The design is similar to the Bank of Bengal Share certificates. 

Five Rupees, King George V portrait is similar to the lead statue shown above. Signed by J.W. Kelly. Issued in 1934.  

King Edward VIII was crowned on 20th January 1936 and soon on 11th December 1936, he abdicated the throne. The designs and essays were prepared for the first issue of RBI currency notes, but because of his abdication, these designs were never issued. A 100 Rupees banknote with King Edward VIII side profile was printed by CNP, Nasik in 1936 and this specimen essay was signed by Sir Osborne Smith. The design of the essay specimen of this note is similar to King George VI Portrait 100 Rupees notes. 

  King George VI coronation picture. The side profile of this image was adopted as portrait design in the currency notes. Signature of the King. Image Curtsey: Christie's. 

Reserve Bank of India in 1935 

First Central Board of Directors; STANDING (Left to Right): Sundar Singh Majithia, U. Bah Oh, Shri Ram, Badridas Goenka, Edward Benthall, F.E. Dinshaw, J.W. Kelly, A.A. Bruce, M. Ramachandra Rao;

SITTING: Adam Hajee Mohammad Sait, Purshotamdas Thakurdas, James B. Taylor, Osborne A. Smith, Sikander Hyat-Khan, Homi Mehta, Muzammilullah Khan.

The Reserve Bank of India was set up as a Share Holders' Bank. The Share Issue of the Bank offered in March, 1935 was the largest share issue in India at the time. The matter was further compounded by the conditions and restrictions imposed under the Act. These conditions related to qualifications of the shareholders, the geographical distribution and allotment of shares (to avoid concentration of shares and to ensure that those holding the shares were fit and proper. To simplify matters, Share Certificate Forms of the different registers were printed in different colours. Despite the intricate and gigantic nature of the task, it was carried out with great 'accuracy and dispatch'.

 

The First Telegram: “OSBORNE SMITH GOVERNOR RESERVE BANK CALCUTTA. FOLLOWING HAS BEEN RECEIVED FROM SECRETARY FOR YOU. BEGINS, AS RESERVE BANK COMMENCES OPERATIONS TODAY I TAKE OPPORTUNITY TO CONVEY YOU AND YOUR COLLEAGUES ON THE BOARD MY MOST GOOD WISHES AND TO EXPRESS MY CONFIDENCE THAT THIS GREAT UNDERTAKING WILL CONTRIBUTE LARGELY TO THE ECONOMIC WELL BEING OF INDIA AND OF ITS PEOPLE.” PRIVATE SECRETARY VICEROY. Reserve Bank Begins Business... Bombay Office ... Functions taken over from Imperial Bank on April 4, 1935.

RBI against Nationalisation, news paper article. Also picture of C.D. Deshmukh can be seen. 

 

Sir Osborne Smith, First Governor of RBI (April 1, 1935 to June 30, 1937). 

Sir James Braid Taylor, 2nd Governor of RBI (July 1, 1937 to Feb. 17, 1943). 

Sir C.D. Deshmukh, 3rd Governor of RBI. He was the first Indian Governor of the RBI. 

(Aug. 11, 1943 to June 30, 1949). 

First Issue of RBI's 100 Rupees currency note. Issued in 1938 and signed by J.B. Taylor. The first governor, Mr Smith did not sign any issued notes.  

10,000 Rupees currency notes were issued in 1938. Image Curtsey: Kishore Jhunjhunwalla

10 Rupees currency issued in 1949 and was signed by C.D. Deshmukh. It is also remarkable that in 1949 RBI issued only 10 Rupees with this governor.  

Notes & References: 

1. Rezwan Razack, Kishore Jhunjhunwalla; The revised standard reference guide to Indian Paper Money, Currencies & Coins, Mumbai, 2012. 

2. Nilaish; A Comprehensive Guide to Early Paper Money of India (1770-1861), Xlibris, London, 2012. 

3. P.L. Gupta, Paper Money of India, Currencies & Coins, Mumbai, 2000 (Out of print). 

4. Bazil Shaikh, Sandhaya Srinivasan; The Paper & The Promise, RBI Publication, Mumbai, 2009. 

5. All images are used from my collection or otherwise is indicated.