The Paper Currency Act, 1861
The Paper Currency Act, 1861 was a law passed by the Imperial Legislative Council in India during British rule. Its goal was to regulate the government’s paper currency. Before the Act, many commercial banks in India issued their own banknotes, including the East India Company. The Act gave the government control over banknotes and made it the sole issuer of currency in India. The three Presidency Banks—Bank of Bengal, Bank of Bombay, and Bank of Madras—issued notes on behalf of the East India Company. A few years before India’s independence, the Reserve Bank of India Act, 1934 repealed the Paper Currency Act, making the RBI the sole banknote issuer in India. The Act is now repealed and no longer in force.
This page was last edited on 2 February 2026, at 07:27 (CET).