When we hold a crisp Indian banknote in our hands today, it feels ordinary — something we use every day without much thought. Yet, these pieces of paper represent an extraordinary journey, one deeply tied to India's struggle for administrative self-sufficiency and economic identity. At the heart of this story lies the establishment of the India Currency Note Press at Nasik Road — a milestone in India’s economic and printing history.
This article explores the fascinating birth of the Currency Note Press, the forces that led to its creation, and the early steps that laid the groundwork for India’s journey toward producing its own secure currency and fiscal documents.
Before Government Paper Currency
Before the mid-19th century, India did not have Government of India-issued currency notes. The financial system was primarily coin-based, using gold, silver and copper coins issued by the East India Company, such as the iconic 1835 One Rupee coin of William IV and the 1840 Queen Victoria issues. These coins formed the backbone of commerce and tax collection.
However, the use of paper currency was not entirely unknown. Presidency Banks — namely, the Bank of Bengal, Bank of Bombay, and Bank of Madras — issued their own banknotes for regional circulation. These notes were used in urban commercial centers and were accepted largely by merchants and traders within their respective presidencies.
While these early notes played an important role in trade, they lacked standardization and widespread acceptance across India. Each presidency had its own designs, which caused challenges for interregional commerce.
The Paper Currency Act of 1861
Recognizing the urgent need for a unified, standardized currency system that could support the expanding colonial administration and facilitate trade across regions, the British government introduced the Paper Currency Act of 1861. This landmark legislation vested the exclusive rights of note issuance to the Government of India, effectively ending the note-issuing powers of the Presidency Banks (Bank of Bengal, Bank of Bombay, and Bank of Madras).
Under the Paper Currency Act of 1861, the Government of India began issuing standardized currency notes, valid throughout British India. These notes were designed to inspire confidence among the population and to simplify trade and administrative transactions. However, India did not yet have the local infrastructure or security expertise to print these notes domestically, so they were initially printed by the Bank of England and shipped to India.
The earliest Government of India notes issued under this new system prominently featured the portrait of Queen Victoria, the then reigning monarch. As the use of paper currency spread across India, design changes were introduced to improve security and deter counterfeiting. In 1867, the colonial administration transitioned to uniface notes, meaning they were printed on only one side. These notes did not feature any portrait.
The next major design milestone occurred during World War I. In 1917, the Government of India introduced notes featuring the portrait of King George V, who was then the Emperor of India. Among these, the Rs. 1 note introduced in 1917 holds a special place in Indian numismatic history, as it marked the first time such a low denomination was issued in paper form. If you'd like to explore the story of the one rupee note in detail, check out our dedicated article on the British India 1 Rupee note.
Bank of England’s Role in Printing Indian Currency Notes
With the Paper Currency Act in force, India needed a trusted printer capable of producing secure and high-quality notes. The task fell to the Bank of England, which had extensive experience in producing secure banknotes for Britain.
In 1861, the Bank of England printed the first Government of India currency notes, and these were issued to the public in March 1862. This marked the beginning of India’s official government-backed paper currency era.
From 1862 to March 1924, the Bank of England remained the exclusive printer of Indian currency notes. While these notes were highly secure and consistent in design, the arrangement had significant downsides:
Dependency on Britain: India was entirely reliant on a foreign institution for the supply of its most critical financial instrument.
High Costs: Printing abroad and shipping large consignments of cash was expensive and logistically challenging.
Security Risks: Transporting currency across oceans posed serious risks of theft and interception.
Printing of Postage Stamps: The Survey of India
In parallel with the development of currency notes, the production of postage stamps was another vital element of India’s administrative machinery.
The first official Indian postage stamps (apart from local issues like the Scinde Dawk) were introduced in 1854. Up until 1862, these stamps were printed by the Survey of India using plates prepared at the Calcutta Mint. This domestic printing demonstrated that India had some technical capability to handle secure document production on a small scale.
However, after 1862, the contract for printing postage stamps was awarded to Messrs. Thomas De La Rue & Company in London, which continued producing India’s stamps until 1924. This further illustrated India’s growing dependence on British firms for essential administrative documents.
The Push for Domestic Printing
As the 20th century progressed, it became clear to the colonial administration that India needed to reduce its dependency on foreign printers for vital security documents, including banknotes and postage stamps. Several factors drove this change:
National Security: Relying on overseas printing for currency and stamps posed clear risks to security and sovereignty.
Economic Efficiency: The costs of foreign contracts, shipping, and insurance were high and continued to rise.
Administrative Control: A local facility would allow faster responses to demand fluctuations and easier design updates.
The impending expiration of the contracts with the Bank of England (for currency notes) and De La Rue & Company (for stamps) further accelerated the move toward domestic production.
Choosing Nasik Road: A Strategic Decision
In response to these imperatives, the Government of India decided to establish its own security printing facility. After careful evaluation, Nasik Road, located in Maharashtra, was selected as the ideal site for the new press.
Why Nasik Road?
Favorable Climate: Nasik Road offered a climate with moderate humidity and minimal extreme temperature fluctuations, crucial for storing sensitive paper and operating delicate printing machinery.
Strategic Location and Connectivity: Situated on a major railway line, Nasik Road was well connected to important administrative centers and commercial hubs throughout India. This connectivity would ensure smooth distribution of notes and stamps once printed.
Security Considerations: Nasik Road’s location away from major urban centers provided an added layer of security against sabotage and theft.
Laying the Groundwork
In 1923, a critical demonstration was held in Delhi to assess whether India could feasibly produce security documents such as postage stamps, fiscal papers, and postal stationery domestically. This demonstration was an important technical and administrative milestone, as it showcased India's emerging capability to handle sophisticated printing processes that had previously been outsourced to foreign printers.
The successful outcome of this demonstration convinced the colonial administration that it was not only possible but practical to establish a full-scale security printing press within India. As a result, the contract for producing stamps, postal, and fiscal stationery was officially awarded in 1923, marking a decisive commitment to move forward.
Following this decision, the groundwork for the press began at Nasik Road. The site was formally opened in September 1924, and after extensive preparation and equipment installation, the first official printing activities commenced in November 1925.
Building the Nasik Press
Establishing a state-of-the-art printing press required a massive investment, both in terms of money and technical planning. The facility needed to accommodate specialized machinery, create secure storage, and provide living quarters for technical staff.
The project involved:
Quarters for Staff: Essential for attracting skilled workers to the relatively remote location.
Plant and Machinery: High-precision printing presses and related equipment imported to meet stringent security and quality requirements.
Power Supply and Utilities: A robust electric power system, dedicated water supply, and comprehensive drainage networks were constructed to support operations and ensure hygiene.
Railway Siding: Direct railway access was created to facilitate the movement of raw materials (like specialized paper and inks) and the distribution of finished currency notes and stamps.
Lamp Bore Well: Constructed to ensure a steady supply of water for both industrial and residential needs.
The initial phase cost a little less than Rs. 15 lakhs, with approximately Rs. 8 lakhs allocated for staff quarters and about Rs. 7 lakhs spent on plant, machinery, and essential infrastructure. An additional sum of Rs. 2 lakhs was later sanctioned, bringing the cost of further improvements to about Rs. 6.81 lakhs.
Beginning Operations: From Stamps to Notes
In November 1925, the first official printing activities commenced at Nasik Road. Initially, the press focused on printing postage stamps and fiscal stationery, marking an important proof-of-concept moment. This early success laid the foundation for expanding into currency note production, a much more complex and security-sensitive endeavor.
Establishing the Currency Note Press
While the original press began with postage stamps, fiscal papers, and postal stationery, the ultimate goal was always to print India’s own currency notes domestically. The sense of urgency to establish this capability grew rapidly, as the country sought to stop importing printed notes from Britain as soon as possible.
The construction of the dedicated Currency Note Press at Nasik Road officially began in August 1926, even before all the legal and administrative formalities were fully finalized. This proactive approach highlighted the determination of the administration to achieve self-reliance swiftly.
By the time the facility and the accompanying staff quarters were completed, the project had cost approximately Rs. 20 lakhs — a significant investment reflecting the strategic importance placed on this endeavor.
Symbolism and Strategic Importance
The establishment of the Currency Note Press at Nasik Road was more than an infrastructural achievement. It marked a pivotal shift in India’s administrative and economic landscape, symbolizing a decisive move towards operational independence and national pride.
Reducing Foreign Dependency: For decades, India had depended on foreign firms to supply essential security documents. By establishing this press, India dramatically reduced its reliance on external players for such a critical national function.
Enhanced Security: Printing notes and stamps domestically meant greater control over production, lower risks of forgery or theft during transit, and improved oversight of security measures.
Economic Efficiency: While the initial costs were significant, the long-term savings on printing, shipping, and insurance more than justified the investment.
A Milestone That Laid the Foundation
The birth of the Currency Note Press at Nasik Road represents one of the most important chapters in India’s monetary and administrative history. From relying on the Bank of England and Thomas De La Rue & Company, India took bold steps towards self-reliance by establishing its own high-security printing facility.
Though conceived and constructed under colonial rule, the press sowed the seeds for future self-sufficiency and showcased India’s capability to handle complex and sensitive technological challenges. It became a foundation for modern currency production and administrative resilience — a story of strategy, foresight, and national ambition.
When we glance at a beautifully crafted Indian banknote today, we are holding a piece of this extraordinary legacy — a legacy that began in Nasik Road almost a century ago.