Set Description:
The most significant event of the period was the establishment of the Reserve Bank of India in 1935 as the central note-issuing authority.The death of King George V in 1936,the subsequent coronation and abdication of King George VIII and the coronation of The Duke of York as King George VI in May 1937 were the events that necessitated a change in the design of Indian Paper Money.The notes with the portrait of King George VIII and in the watermark were scheduled to be released.The notes now had to be changed to the portrait of the new King George VI and the First notes of the Reserve Bank were issued in 1938.In 1940,monetary exigencies of World War II resulted in the second issue of notes of small denominations.
The notes were to be signed on behalf of the bank by the Governor.It was also decided to discontinue the notes of Rupees 50 and 500.The first Reserve Bank of India notes were issued with the portrait of King George VI of Rupees 5 in January 1938.
The Government of India did not entrust the Reserve Bank to issue the One Rupee Note and decided to hold the issue of the notes of this denomination into its own hands.These notes were treated in the Government accounts at par with the metallic rupee coins.Accordingly,these notes that were printed at Nasik,had the signature of Sir C.E.Jones,the then Secretary of Finance Department;he signed the notes on behalf of Government of India.These notes were ready by the beginning of July 1941,but they were issued only on December 10,1944.when the stock of the England printed King George V notes exhausted.They were withdrawn from circulation on October 27,1957.From that date they ceased to be legal Tender.
The Reserve Bank decided to issue notes of 2 Rupees.The issue of a note of anf new denomination was not possible,unless the Reserve Bank of India Act was amended.Consequently,it was amended and the notes of 2 Rupees were issued on March 3,1943.
The first Governor,Sir Osborne Smith did not sign any banknotes.The first issued were signed by Sir J.B.Taylor,who held the office of the Governor of the bank from July 1,1937 and Sir C.D.Deshmukh took over the stewardship of the Reserve Bank of India on the Death of J.B.Taylor on 17th February 1943 until 11th August 1943.He later became the Governor of Reserve Bank of India and Finance Minister in the Central Government of India.
In 1946 the high denomination notes of Rs.1000 and Rs.10000 were demonetised to curb unaccounted wealth.
{The contents of the above information was Copied from India Paper Money-2012 with the permission of its Author Sir Mr.Rezwan Razack.}
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