Throughout history, the right to Coinage and Currency and issues of sovereignty have been curiously conjoined, emotionally if not rationally. These issues stimulate debate even today.

The transition of currency management from colonial to independent India was a reasonably smooth affair. Midnight, August 14, 1947 heralded Indian independence from colonial rule. The Republic, however, was established on 26th January, 1950. During the interregnum, the Reserve Bank continued to issue the extant notes.

Government of India brought out the new design Re. 1 note in 1949.

Symbols for independent India had to be chosen. At the outset it was felt that the King's portrait be replaced by a portrait of Mahatma Gandhi. Designs were prepared to that effect. In the final analysis, the consensus moved to the choice of the Lion Capital at Sarnath in lieu of the Gandhi Portrait. The new design of notes were largely along earlier lines.

In 1950, the first Republic India banknotes were issued in the denominations of Rs. 2, 5, 10 and 100. There was slight variation in colour and design in case of Rs. 2, 5 and 100 notes. The ship motif on the reverse of Rs. 10 note was kept intact for the sake of continuity.

In 1953, Hindi was displayed prominently on the new notes. The debate regarding the Hindi plural of Rupaya was settled in favour of Rupiye. High denomination notes (Rs. 1,000, 5,000, and 10,000) were reintroduced in 1954. High denomination notes were once again demonetised in 1978 for the same reasons as the 1946 demonetisation.

The small denomination of Rs. 2 and 5 of the early series depicted the fauna motifs such as tiger, bucks and doe, Sambar deers and gazelles. In 1975, a collage of motifs explaining India’s agricultural endeavour towards attaining self-sufficiency in food production found represented on Rs. 100 note depicting the activities of farming and plucking of tea leaves.

The lean period of the early sixties led to considerations of economy and the sizes of notes were reduced in 1967. In 1969 a commemorative design series in honour of the birth centenary celebrations of Mahatma Gandhi was issued depicting a seated Gandhi with the Sevagram Ashram as the backdrop.

Cost benefit considerations prompted the Bank to introduce Rs. 20 denomination notes in 1972 and Rs. 50 in 1975.

The 1980s saw a completely new set of notes issued. The motifs on these notes marked a departure form the earlier motifs. The emphasis lay on symbols of Science & Technology (Aryabhatta on the Rs. 2 note), Progress (the Oil Rig on Re 1 and Farm Mechanisation on Rs. 5 and Hirakud dam on Rs. 100) and a change in orientation to Indian Art forms on the Rs. 20 and the Rs. 10 notes. (Konark Wheel, Peacock, Shalimar garden).

Management of Currency had to cope with the rising demands of a growing economy, together with a fall in purchasing power. The Rs. 500 note was introduced in October 1987 with the portrait of Mahatma Gandhi. The water mark continued to be the Lion Capital, Ashoka Pillar.