The Indian Paper Currency Act, 1900

Act No. VIII (Act No. 8) of 1900 (Repealed)

Passed by the Governor General of India in Council.

(Received the assent of the Governor General on the 29th June, 1900.)

An Act to amend the Indian Paper Currency Act, 1882, as amended by the Indian Paper Currency Act, 1898.

WHEREAS it is expedient to amend the Indian Paper Currency Act, 1882 as amended by the XX Indian Paper Currency Act, 1898; It is hereby enacted as follows:

Short title and commencement

Section 1. (1) This Act may be called the Indian Paper Currency Act, 1900.

(2) It shall come into force at once.

(3) It shall remain in force for two years from the commencement thereof.

Substitution of a new section for section 13A, Act XX of 1882; Gold coin or bullion held as a reserve by Secretary of State; Transmission of silver bullion by Secretary of State; Purchase of silver by Government of India; Gold held as reserve by Secretary of State may be replaced by coin added to reserve in India; Account

Section 2. For section 13A of the Indian Paper Currency Act, 1882, the following section shall be substituted, namely:

"13A. (1) If the Secretary of State for India shall consent to hold in gold coin or gold bullion the equivalent in value to notes issued in India as a reserve to secure the payment of such notes, the Governor General in Council may from time to time direct that currency notes shall be issued to an amount equal to the value of gold so held by the Secretary of State for India at the rate fixed by section 12 of the Indian Coinage Act, 1870.

(2) If the Secretary of State for India shall transmit the gold held by him under sub-section (1) or any part thereof in the form of gold coin or gold bullion to the Government of India, the coin or bullion so transmitted shall, when received by the Government of India, form part of the currency reserve under section 19.

(3) If the Secretary of State for India shall think it expedient to expend the gold coin or bullion held by him under sub-section (1) or any other funds at his disposal in the purchase of silver bullion and to transmit the same to India for currency purposes, then—

(a) the silver bullion so purchased shall, until rupees are added to the currency reserve under clause (b) of this sub-section, be held as security for currency notes; and

(b) the Government of India shall, on receiving such silver bullion, give directions for coining the same into rupees as soon as convenient, and shall add to the currency reserve a number of the rupees so coined equal in value, at the rate fixed by section 12 of the Indian Coinage Act, 1870, to the price of the silver bullion so purchased and transmitted as aforesaid.

(4) (a) Nothing in this Act shall be deemed to prohibit the Government of India from expending any gold coin or gold bullion held as part of the currency reserve under section 19 in the purchase of silver bullion.

(b) The silver bullion so purchased shall, until rupees are added to the currency reserve under clause (c) of this sub-section, take the place of the gold so expended as security for the currency notes issued.

(c) On receiving such silver bullion, the Government of India shall give directions for coining the same into rupees as soon as convenient, and shall add to the currency reserve under section 19 a number of the rupees so coined equal in value, at the rate fixed by section 12 of the Indian Coinage Act, 1870, to the gold so expended by the Government of India.

(5) If the Government of India shall appropriate and set apart in India as a part of the currency reserve under section 19 an amount of coin of the Government of India equal in value to any notes issued under this section, the gold held by the Secretary of State for India as a reserve to secure the payment of such notes shall be dealt with as the Secretary of State shall direct.

(6) Coin or bullion held by the Secretary of State or in transit to India, or in the custody of the Mint Master during coinage, shall be separately shown in the abstract of accounts made up under section 27."

Repeal

Section 3. The Indian Paper Currency Act, 1898, and the Indian Paper Currency Act Amendment Act, 1898, are hereby repealed.