2016-05-02 Mon

Paper money was introduced to India in the late 18th Century with the Paper Currency Act of 1861. This act gave the British Government the monopoly to issue notes in India.

The First set of British India notes were the ‘Victoria Portrait’ Series. These currency notes printed on hand-moulded paper were issued in denominations of 10, 20, 50, 100, and 1000. They carried two language panels and were uni-faced. The notes bore the signature of the Commissioner of issue and the security features incorporated were: watermark, two printed signatures and the registration of the notes. The watermark incorporated signatures of Lord Canning, The Viceroy and Samuel Laving, the Finance Member.

These notes were promissory notes to be redeemed at their office of issue. Sending such notes back from one bank to another presented a serious - and expensive - security concern. Hence as a security precaution, notes were cut in half. One-half was sent by post and on confirmation of receipt, the other half was despatched.

Later in 1867 due to a rise in forgeries, the ‘Victoria Series notes’ were withdrawn and replaced by the uniface 'Underprint Series'.