The Indian Paper Currency Act, 1902

Act No. IX (Act No. 9) of 1902 (Repealed)

Passed by the Governor General of India in Council.

(Received the assent of the Governor General on the 27th June, 1902.)

An Act further to amend the Indian Paper Currency Act, 1900.

Preamble

WHEREAS it is expedient to amend the Indian Paper Currency Act, 1900; It is hereby enacted as follows:

Short title

1. This Act may be called the Indian Paper Currency Act, 1902.

Repeal of section 1(3) and section 3, Act VIII of 1900

2. Section 1, sub-section (3) and section 3 of the Indian Paper Currency Act, 1900, are hereby repealed.

Explanatory Note

Overview

The Indian Paper Currency Act, 1902, was enacted by the Governor General of India in Council and received assent on 27th June 1902. It served as a brief but targeted amendment to the Indian Paper Currency Act of 1900, focusing on repealing specific provisions that were either obsolete or no longer aligned with evolving currency policy.

Purpose of the Act

The principal objective of the 1902 Act was to remove the time-bound nature and repeal clause found in the 1900 Act. Originally, the 1900 Act was designed to be temporary, with a fixed validity of two years from its commencement. Furthermore, it had repealed two previous Acts from 1898. By 1902, the arrangements introduced under the 1900 Act—especially the provisions concerning the handling of gold and silver reserves—had presumably proven effective or essential, warranting their continuation without an expiry.

Key Provisions

Repeal of the Sunset Clause and the Repealing Clause:

Section 1(3) of the 1900 Act, which stated that the Act would remain in force for two years, was repealed. This effectively made the provisions of the 1900 Act permanent, unless amended or repealed by a future Act.

Section 3 of the 1900 Act, which had repealed the Indian Paper Currency Acts of 1898, was itself repealed. This may appear paradoxical, but in practice, it helped streamline the legislative text by removing a clause that had already fulfilled its purpose.

Significance

While succinct, this amendment is significant in demonstrating the iterative nature of colonial currency legislation. The act reflects the British administration’s approach to refining monetary policy through incremental legal modifications, likely in response to practical challenges in implementing the 1900 law.

Conclusion

The Indian Paper Currency Act, 1902, represents a minor but important legal adjustment in the administration of paper currency during British rule. By repealing parts of the 1900 Act, it aimed to enhance legislative clarity and adapt the monetary framework to contemporary needs without overhauling the entire currency system.