The history of the Indian rupee dates back to Ancient India, which was among the earliest issuers of punch-marked coins as early as the 6th century BCE. Then, the 16th-century ruler Sher Shah Suri is credited with establishing the precursor to the modern rupee. Back then, he issued a standardised silver coin weighing 178 grams, which was called 'Rupiya'. The system was carried on by the Mughal and British empires.
Moving on from coins, India saw its first paper currency in the late 18th century by private banks like the Bank of Hindostan (1770-1832). Later, with the Paper Currency Act of 1861, the British government had the sole right to issue currency notes. It was in 1935 that the Reserve Bank of India was established, after which it took over the issuance of currency notes.
Now speaking of the highest denomination notes, we usually think of the Rs. 2,000 note. But the history of India’s highest denomination note dates back to the pre-independence era. As of today, according to the RBI Act of 1934, the RBI is authorised to print these high-denomination notes if necessary. But did you know what the highest denomination note ever printed in the history of Indian currency is?
Before we reveal the answer to this interesting question, let’s quiz you on the same. Take your guess before scrolling down to the answer.
What is the highest denomination note ever printed by the RBI?
A. Rs.100,000
B. Rs.10,000
C. Rs 5,000
D. Rs 2,000
The correct answer is Rs. 10,000.
The highest denomination note ever printed by the Reserve Bank of India (RBI) was the ₹10,000 note, introduced in 1938 during the British Raj. It was later demonetised in January 1946. The Rs 10,000 was again reintroduced in 1954. These notes were demonetised in 1978.
Highest Denomination Note Ever Printed In India - Timeline
Image: RBI
1938: The highest denomination note of Rs 10,000 was printed by the Reserve Bank of India (RBI).
1946: It was later taken out of circulation by the British government.
1954: A new edition of the note was printed and reintroduced along with other high-denomination notes.
1978: The note was permanently demonetised along with other high-denomination notes.
Therefore, the Rs. 10,000 note remains the highest denomination note ever printed in India’s history.
It was primarily used for traders and businesses for high-value transactions.
Why was the Rs. 10,000 note demonetised?
First, in January 1946, the British government decided to demonetise the Rs. 10,000 note to combat black market activities and tax evasion that had escalated during World War II.
Later in 1954, the Rs. 10,000 note was reintroduced and circulated alongside other large denomination notes like the Rs. 5,000 note.
On 16 January 1978, the Indian government under the then PM Morarji Desai decided to demonetise it along with the Rs. 5,000 note and the Rs. 1,000 note under the 1978 High Denomination Bank Notes (Demonetisation) Ordinance.
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