British India 1 Rupee Note

The 1 Rupee note of British India holds a unique place in the history of Indian currency. As the lowest denomination paper currency introduced by British India, it marked a significant shift in monetary practices and showcased the evolving economic and political landscape under colonial rule. From its inception during World War I to its final issues before independence, this modest note encapsulates stories of resource scarcity, colonial policy, and numismatic intrigue. For collectors, it represents both a historical artifact and a prized addition to any collection.

Historical Context

Currency Landscape Before 1917

Since the enactment of the Indian Paper Currency Act of 1871, the lowest denomination of banknotes in British India was 5 Rupees. The 1 Rupee denomination existed only as a silver coin and was widely trusted due to its intrinsic metal value. Paper currency was generally reserved for higher denominations, as the public strongly associated value with the actual precious metal content. Thus, before 1917, the lowest paper money available to the public was the 5 Rupee note, making the eventual introduction of the 1 Rupee note a significant monetary innovation.

World War I and Silver Shortage

During World War I, the global demand for silver surged, and prices soared. Britain faced severe shortages of silver bullion needed to mint coins. The Indian Paper Currency (Amendment) Act, 1917, reduced the minimum denomination of paper currency to 1 rupee to address this shortage. The 1 Rupee note was issued on 30 November 1917, followed by the 2 1/2 Rupee note on 2 January 1918. Initially, these notes were met with suspicion and were sometimes exchanged at a discount, but the public gradually accepted them as practical necessities.

1917 One Rupee Banknote

Design and Features

The 1917 1 Rupee currency note was the first Indian note to feature a portrait of King George V and the first to have printing on both sides, making it distinct from earlier uniface notes.

The banknote featured a prominent portrait of King George V in a circular coin on the left. The top inscription read 'Government of India,' and below it, the promise text stated 'I promise to pay the bearer the sum of One Rupee on demand at any Office of Issue.' A distinctive red underprint similar to a security tint added protection against counterfeiting. The denomination was boldly printed in the center in English, with the signature of the Controller of Currency below.

The reverse depicted a multilingual panel listing 'One Rupee' in various regional scripts flanked by the crowned monogram 'GVI' and an image resembling a coin with the text 'ONE RUPEE INDIA 1917. Security features included a star and wavy lines watermark and underprint. The paper money had no security thread. The note measured 128 x 70 mm, making it compact and easily handled.

Issuing Circles and Universalized Issues

The first print included issuing circles indicated by prefixes similar to uniface note systems: A = Cawnpore, B = Bombay, C = Calcutta, K = Karachi, L = Lahore, M = Madras, R = Rangoon. This circle system for one rupee notes was abolished in November 1918. Afterward, universalized issues used prefixes D to S (skipping I, Q, and earlier-used K, L, M, R) as well as X, Y, Z.

Language Panel Varieties

The reverse language panel included 8 languages: Urdu, Kaithi, Bangla, Burmese, Telugu, Tamil, Kannada, and Gujarati. There are two varieties: incorrect Gujarati (on prefixes A, B, C, K, L, M, R, D, E) and corrected Gujarati (D, E, F, G, H, J, X).

Signature Varieties

Three signature varieties exist: M.M.S. Gubbay (found on issuing circle notes and early universalized notes), A.C. McWatters (on universalized notes with both watermark types), and H. Denning (on universalized notes with plain field watermark).

Watermark Varieties

Notes with a rayed star in a square box watermark were printed in the UK from 1917 to 1926. Notes with a rayed star in a plain field were printed in Nasik from 1928 onward.

Summary of Varieties and Prefixes

1. Gubbay signature has three varieties, all with the rayed star in square box watermark:

a. Issuing Circle Prefixes [A, B, C, K, L, M, R]
b. Universalized with incorrect Gujarati [D, E]
c. Universalized with correct Gujarati [D, E, F, G, H, J, X]

2. McWatters signature has two varieties, all universalized and with correct Gujarati:

a. Rayed star in square box [N, O, P, X, Y, Z]
b. Rayed star in plain field [P, S]

3. Denning signature has one variety - Rayed star in plain field [S]

Historical Notes

Around 20 million notes with prefixes B, L, and M were printed for use in East Africa. Some notes (like some notes from prefix M/9) were sea sunk when S.S. Shirala was torpedoed in 1918. Booklet issues began in 1919, each booklet containing 25 notes with red covers bearing 'GVI'. Booklet prefixes include B/24 and later X, Y, Z.

1935 One Rupee Banknote

Design and Features

The 1935 1 Rupee note maintained King George V’s portrait but introduced a more elaborate and refined design. It featured detailed border patterns, a prominent language panel on the front listing 8 languages (Urdu, Kaithi, Bangla, Burmese, Telugu, Tamil, Kannada, and Gujarati), and text reading 'Government of India' along with the denomination 'One Rupee.' The note also included the signature of the Controller of Currency, J.W. Kelly.

Notably, it is the only Indian banknote without a serial number on the front; instead, the serial number appears on the reverse side. The back displayed a coin-like design with the inscription 'ONE RUPEE INDIA 1935.' The note was smaller than the 1917 version, measuring only 92 x 55 mm, making it even more compact and distinct.

Historical Context

Although these notes were printed in England in 1935 by three different printers, they were not initially shipped to India due to King George V's death in 1936. However, much like the 1917 notes, global conflict again led to their use. During World War II, metal shortages prompted the release of about 250 million notes that had been stored in vaults in the UK, which were then shipped to India. Additionally, these notes were also printed in Nasik, with different prefixes and watermark types compared to those printed in England.

Watermark Varieties

Two watermark types exist:

1. Portrait of King George V and 'GOVT OF INDIA' (used on notes printed in England).

2. Two five-pointed stars and 'GOVT OF INDIA' pattern (used on notes printed in India at Nasik).

Summary of Varieties and Prefixes

Printed in England (Portrait watermark)

1. Prefixes A & B: Alphanumeric prefix in single line without space (e.g., 01A), monoweight font, printed by Bank of England.

2. Prefix C: Alphanumeric with space in single line (e.g., 01 C), thin serif font, printed by Waterlow & Sons.

3. Prefix D: Fractional prefix (number above, letter D below), serials with commas, Bradbury Wilkinson.

Printed in India (Stars watermark)

4. Prefixes E & F: Fractional prefix with letter above numeral, Indian-style font, printed at India Security Press, Nasik

Booklet issues contained 25 notes per booklet with greenish covers and the GRI monogram.

1940 One Rupee Banknote

Design and Features

The King George VI 1 Rupee note, issued in 1944, had a blue-gray color and a modern, simplified design. The obverse featured the portrait of King George VI on the right, 'GOVERNMENT OF INDIA' at the top, and 'ONE RUPEE' prominently in the center. Notably, there was no promissory text, distinguishing it from earlier notes. The denomination '1' appeared clearly, and the serial number was on the front. The note carried the signature of C.E. Jones, Secretary, Finance Department.

The reverse displayed an image of the Indian 1-rupee coin dated 1940, inscribed 'ONE RUPEE INDIA 1940', along with a language panel listing seven languages (excluding Burmese): Urdu, Kaithi, Bangla, Telugu, Tamil, Kannada, and Gujarati. The watermark featured King George VI, and the note was printed by India Security Press, Nasik. It measured 101 x 63 mm.

Historical Context

Despite the formation of the Reserve Bank of India, this 1 Rupee note was not issued by the RBI due to Section 24 of the Reserve Bank of India Act, which set the lowest denomination for RBI notes at 2 Rupees. Instead, it was issued by the Government of India and held the legal status of a coin rather than a typical currency note.

Originally continuing as a wartime measure to address metal shortages — a practice that began with the 1935 1 Rupee note — it remained necessary through the late 1940s. This note was used during the final years of British rule, continued under the Dominion of India, and remained in circulation for a short period after the Republic of India was formed, before finally being withdrawn on 27 October 1957.

Serial Number Colors and Inset Varieties

The King George VI 1 Rupee note is notable for its fascinating serial number color and inset varieties, marking a milestone in Indian banknote printing. There are three main serial number color types:

Black Serial Numbers — Found with two inset varieties: without inset (prefix A to Z, excluding I and O) and with Inset 'A' (prefix W).

Green Serial Numbers — Always with Inset 'A' (prefix A to W, excluding I and O).

Red Serial Numbers — No inset (prefix D and E). These were issued after independence as Dominion of India issues to help distinguish them from earlier British-era issues.

Interestingly, this was the first time an inset system was introduced on Indian banknotes, setting a precedent for future designs. These small details give each note a unique character and provide collectors with an engaging challenge to track down every variety.

1 Rupee India Notes Used in Burma

The Currency Act, 1940

Under Section 2 of the Burma Currency Act, 1940, the 1 Rupee notes issued by the Government of India were declared legal tender in British Burma, holding the same value as silver rupee coins. Interestingly, these notes were legally treated as "rupee coins" and not as traditional currency notes under the Reserve Bank of India Act. Both the 1935 and 1940 One Rupee notes circulated in Burma, ensuring financial stability during wartime shortages.

Military Administration of Burma

After British forces regained Burma from Japanese control during WWII, the Reserve Bank of India reopened in Rangoon on 20 August 1945. The British Military Administration took charge of currency management. The 1940 One Rupee notes were overprinted in red with the text "Military Administration of Burma Legal Tender in Burma Only." This was formalized under Currency Proclamation No. 6 of 1945, which reintroduced the Burmese rupee and demonetized Japanese invasion currency.

Two fascinating varieties exist:

1. Black serial number (no inset): Prefixes T/99, U/0, U/1. Only 3 million were printed, making it the rarest variety.

2. Green serial number with Inset A: Prefixes C/86–C/99, D/0–D/71, E/42–E/99, F/0–F/61.

Burma Currency Board

Following the Burma Currency and Coinage Act of 1946, the Burma Currency Board was established and officially began on 1 April 1947. There were leftover stocks of Indian 1 Rupee notes from the Military Administration that had not been overprinted. The Burma Currency Board reused this stock and overprinted them with the text "Burma Currency Board Legal Tender in Burma Only" in red.

These notes with green serial number Inset A came from prefixes K/27–66 and Q/17–36.

1 Rupee India Notes Used in Pakistan

After independence in 1947, Pakistan needed a quick solution for currency. Under the Pakistan (Monetary System and Reserve Bank) Order, 1947, Indian banknotes were modified for use in Pakistan. Instead of simple overprints, the phrase "Government of Pakistan" and its Urdu equivalent “حکومت پاکستان” (Hakumat-e-Pakistan) were directly engraved into the printing plates, placed at the top and bottom of the watermark area on the front.

The Government of India 1 Rupee note featuring King George VI was issued with a green serial number and an inset letter A. The additional inscriptions appeared in a greenish-gray shade, giving these notes a distinct look. These notes are known with prefixes Q/37–Q/99, R/0–R/40, R/74–R/99, and S/0–S/55.

Legal Status and Monetary Role

Government vs Reserve Bank of India Issuance

Unlike higher-denomination notes issued by the Reserve Bank of India, the 1 Rupee note stood apart as it was directly issued by the Government of India. This legal distinction is significant and is highlighted by the signature on the banknotes.

Under Section 24 of the Reserve Bank of India Act, the lowest denomination permitted for RBI notes is 2 Rupees. Even today, modern 1 Rupee notes continue to be issued by the Government of India and are legally classified as Indian coins under the India Coinage Act, emphasizing their special status in India's monetary system.

Signature and Legal Authorization

The notes bore the signature of the Controller of Currency and Secretary, Finance Department rather than the RBI Governor, underscoring their government-issued status. This detail not only set them apart but also gave them a distinctive identity, making them a fascinating study for collectors and historians alike.

Circulation Role and Economic Impact

The 1 Rupee note during British India played an essential role in everyday life, facilitating small transactions at a time when metal shortages threatened economic stability. Far more than a piece of paper, it became a symbol of resilience — representing how colonial India adapted to global crises and maintained internal economic order despite immense challenges.

Conclusion

The British India 1 Rupee note is much more than a piece of paper—it is a window into the subcontinent’s colonial past, an emblem of economic adaptation, and a collector’s gem. From its wartime necessity to its transformation across monarchs, and its journey through Burma and Pakistan, each note tells a story that resonates even today. For collectors and historians alike, these notes are invaluable testaments to a complex, layered legacy. Preserving and studying them is not only an act of numismatic interest but also a tribute to a pivotal chapter in South Asia’s shared history.

FAQs

When was the first British India 1 Rupee note issued?

The first British India 1 Rupee note was issued in November 1917.

Why were 1 Rupee notes introduced in British India?

They were introduced to conserve silver during World War I due to a global shortage.

What makes the British India 1 Rupee note unique?

It was issued by the Government of India (not RBI) and bears the signature of the Controller of Currency or Secretary, Finance Department, making it distinct among Indian banknotes.

Are British India 1 Rupee notes rare today?

Yes, especially in high-grade, uncirculated condition. Certain varieties, prefixes, and overprints are highly prized among collectors for their historical significance and scarcity.

Can these notes still be used as legal tender?

No. These notes are no longer legal tender and are now collector's items.