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Indian History

A History of Indian Paper Money The simple form of these notes led to instances in which forgeries were reported. Soon afterwards, the government decided to change the design substantially, incorporating better security features such as a green under print denoting the denomination for the promise text, use of guilloche designs and alterations in the quality of the paper and the watermark. The watermark now incorporated a code which denoted the date of manufacture of the paper. The system of issue through circles and sub-circles was not changed. In fact, many more sub-circles were established. They were:

These revised notes are known in denominations of 5, 10, 20, 50, 100, 500, 1000 & 10000. In the early 20th century, it was realized that paper currency was getting more and more popular. It was therefore desired that the rigidity afforded to the issue of notes be minimized. As a measure towards this end, notes were "universalized", i.e. the restriction on their encashment at the original circle of issue was removed. This was done in a gradual manner; the low denominations were universalized first, whereas the higher denominations of 100 and upwards were universalized much later. However, the names of the issuing circles were retained in these notes, in full or as initials. In about 1903, a new design with a red under print was employed for the notes of 5, 10 and 50 Rupees.