Notes of the Early Private & Semi-Governmental Banks

Banking in India owes it’s origins in the remote past. Buddhist religious texts dating back to 500 BC indicate that Banking existed as a commercial activity among the tradesmen of the time. However, relevant to the context of Bank Notes, Banking in India started as an activity among the European traders, chiefly the East India Company in the early 18th century. Private banks were set up in the province of Bengal. The idea of paper currency was not new to the European traders as it was already in existence in their own countries. The first bank to employ the concept of paper money was a bank set up in Calcutta by Governor Warren Hastings in c. 1770 AD. However, no issues of this bank survive.

The next bank to issue notes and circulate them on a wider basis was the Bank of Bengal. It was the first bank in India having a government share in it’s working capital. Consequently, it’s notes were accepted to a certain extent in payment of government dues. The earliest known note of this bank bears the date of September 9, 1812. The notes of this bank were later printed by Perkins, Heath & Co. in England. They can be distinguished into at least 10 different types. They were issued in a wide range of denominations, from Rs. 10 to Rs. 1000. The notes depict the personified figure of "Commerce" sitting on articles of merchandise. In 1858, following instances of forgeries, the designs of the notes was completely changed. The new design showed "Brittania" seated in the centre, flanked by "Commerce", "Trade" and "Agriculture". The small vignettes on the sides represent constituent provinces of the Bengal Presidency. These include the Hooghly river scene, the Assamese Rhino, the tomb of Sher Shah in Bihar and the Palms of Orissa Coast.

Later in the 19th century, the city of Bombay witnessed a commercial boom. It led to the establishment of the Bank of Bombay, which received the charter in 1840. Like the Bank of Bengal, the bank of Bombay also had a government share in it’s capital. The charter empowered the bank to issue it’s own notes. These notes bear the vignette of the Town Hall of Bombay, the centre of commercial activity which took place in an open space just in front of this majestic building. The notes also show statuettes of the Hon. Mount Stuart Elphinstone and Sir. John Malcom, the first Governors of Bombay Presidency. The notes of Bank of Bombay range in value from Rs. 10 to Rs. 10,000. Most of the used notes have their signature portion cut after encashment.

The last presidency bank to come into existence was the Bank of Madras. It was established in 1842. Unlike the other two banks, notes of the Bank of Madras were not approved by the government of Madras Presidency for payment of government dues. This let to a severe curtailment in their circulation. They are the rarest of all presidency bank notes. They show a statue of Sir Thomas Munroe, the first governor of Madras, and range in denomination form Rs. 10 to Rs, 3,000.

Apart from the three banks mentioned above, which enjoyed government support, there were several private banks which issued their own notes in this period. However, their circulation was extremely limited and most of such notes in existence today are specimens or unissued notes. These banks include The Bank of Hindostan, The Union Bank, The Commercial Bank and the Calcutta Bank in Bengal; The bank of Western India, The Oriental Bank and the Commercial Bank of India in Bombay; The Madras Government bank and the Asiatic Bank in Madras.