In 1943, World War II was at its prime and the currency crisis was glaring due to the scarcity of silver metal. To rise from this circumstance it became a necessity to introduce one rupee denomination again in circulation. Hence, the British Government gave permission two few Princely States to issue their own money to circulate within the territory, in which Hyderabad state was included.
The various banknote of the different denomination was commenced to print in Nasik Security Press but due to circumstances beyond their control, they were unable to compile and execute this order. Thus, this assignment was entrusted to the Government Central Press at Malakpet, Hyderabad.
The above shown one rupee note was type 1 of the second issue. This note consist of promise text similar to the other denominations. The method of printing this note was called the photo-litho offset process.
The type 1 of the second issue was signed by Mehdi Ya Jung which appeared one the specimen only. The type 1 of this issue was signed by Ghulam Muhammad which consists of prefix A-H and J-M. Later on, note with prefix M-N was issued with the same signatory.
This note’s cutting, numbering, and printing of signature were done at the Nizam’s mint. The type 2 of this denomination do not consist prefix ‘I’ and ‘O’ due to the similarity between numeral ‘One’ and ‘Zero’. These one rupee notes of Hyderabad state was continued to be printed till 1954.