After the Paper Currency Act was enacted in 1861 CE under the rule of British India, paper money began to be officially issued by the government. The act effectively ended the bank’s authority to issue notes. It gave the government monopoly over currency issues in India. James Wilson, the first Finance Member of the Government of India in 1859 CE, put in place initiatives that would introduce Indian banknotes issued by the government.
We use paper money or notes on a daily basis and we have an idea of how to identify genuine ones from those that are fake. We may not be adept at it, but we have an inkling, nonetheless. But what do we know of its history? Do we know when, why, and how Indian paper money came into existence? Notes did not start out the way we know it today. It was much, much different. It began as a bank note, a promissory note given by a bank in lieu of precious metal coins which were payable on demand. Bank notes were a great way to carry money without being weighed down by the weight of coins.