This second issue of One rupee of King George V was issued on 24th July 1940. It was the coloured issue depicting the portrait of King George V.
The note depicts English legend ‘Government Of India' above; language panel on the left; Image of the obverse side of a silver coin depicting the portrait of King George V in front of 'Rupee' (used for the first time) placed in the right hand corner; 'One/Rupee' in the central denomination panel; A large '1' next to the language panel in white; No promise text; Signed by the 'Controller of Currency'.
The reverse of this note depicts a stylised GRI in centre with Serial number in the lower left area and the reverse of 1935 coin in the top left area.
The significant change in the note is the elaborated design and decorated border on the obverse. The language panel is shifted to obverse and a significant change can be noted when compared to the note to 1917.