The Persian Gulf Rupee or the Gulf Rupee was a currency issued by the Government of India and the Reserve Bank of India for use in the Persian Gulf and the Arabic peninsula. The Indian rupee was an official currency in several areas that were controlled by the British and governed from India and it was a legal tender in the Gulf countries up till 1966.
In mid 20th century, there was much smuggling of gold in India due to the excessive external use of rupee. While the smuggling problem lasted for many years it reached to alarming proportions in 1957-58. India was paying for the illegal importation of gold through its foreign reserves. To reduce the strain on India’s foreign reserves and to turn the balance of trade in India’s favour, a separate currency was created. This new rupee note was called as Gulf Rupee and was issued by the Government of India (INR 1) and the Reserve Bank of India (INR 5, 10, 100) only to be used as a legal tender outside the country.
These new rupee notes were introduced by a bill passed in both the Houses of the Indian Parliament and with the Presidential assent on May 1, 1959, and were called as the “External Rupee” or the “Gulf Rupee”. This issue of the ‘special notes’ was not a legal tender in India and was exclusively for use in the Persian Gulf.
General Description:
The series of these special notes were identical to the ‘Indian rupee’ except for a change in its colour, a legend on the obverse and it indicated that they were payable “at the Office of Issue at Bombay” instead of payable “at any office of issue”. They carried a special serial number prefix of “Z”.
Specific note Description:
Denomination – 1 Rupee
Colour – Red
SCWPM Number – India No. R1.
Pattern of – India No. 75d.
First issued – 11 May 1959
Signature – A. K. Roy (Secretary, Ministry of Finance)
Serial Number – Prefix range Z/0 to Z/11 , followed by a six-digit number.
Denomination – 5 rupees
Colour – Orange
SCWPM Number – India No. R2.
Pattern of – India No. 35a.
First issued – 11 may 1959
Signature – H. V. R. Iyengar (Governor, Reserve Bank of India)
Serial Number – Prefix range Z/0 to Z/3, followed by a six-digit number.
Denomination – 10 Rupees
Colour – Red
SCWPM Number – India No. R3.
Pattern of – India No. 39c.
First issued – 11 May 1959.
Signature – H. V. R. Iyengar (Governor, Reserve Bank of India)
Serial Number – Prefix range Z/0 to Z/4, followed by a six-digit number.
Denomination – 100 Rupees
Colour – Green
SCWPM Number – India No. R4.
Pattern of – India No. 43b.
First issued – 11 May 1959.
Signature – H. V. R. Iyengar (Governor, Reserve Bank of India)
Serial Number – Prefix range Z/0 to Z/4, followed by a six-digit number.
In spite of the introduction of “Gulf Rupee”, a great number of Indian rupees were repatriated from Saudi Arabia. These were the rupees taken by the Haj pilgrims each year to Saudi Arabia and exchanged for Saudi riyals. These Indian rupees could be repatriated to the RBI in Bombay and converted in pound sterling according to the arrangements in place with the banks in Saudi Arabia.
Further to ensure that no smuggled rupees could return from the Persian Gulf from the Saudi Arabian Banks, the Reserve Bank of India introduced two special “Haj Notes” along with the “Gulf rupee” in May 1959.
General Description:
These special issue notes were for supplying to the Haj pilgrims proceeding on Haj to Saudi and were distinguishable by their colour and the word “Haj” printed on them. They were payable “at the office of Issue at Bombay” instead of payable “at any office of Issue”.
Specific Note Description:
Denomination – 10 Rupees
Colour – Blue
SCWPM Number – India No. R5.
Pattern of – India No. 39c.
First issued – 3 May 1959.
Signature – H. V. R. Iyengar (Governor, Reserve Bank of India)
Serial Number – Prefix “HA” followed by a six-digit number.
Denomination – 100 Rupees
Colour – Red
SCWPM Number – India No. R6.
Pattern of – India No. 43b.
First issued – 3 May 1959.
Signature – H. V. R. Iyengar (Governor, Reserve Bank of India)
Serial Number – Prefix “HA” followed by a six-digit number.
Bibliography:
Reserve Bank of India Bulletin, Vol. XIII Number 5, May 1959, Bombay, 1959.
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