2638) Did You Know Series (72): A Rs. 10 (Ten Rupees) Gulf Rupee Banknote issued by the Reserve Bank of India (RBI) for circulation in the Emirates of the Persian Gulf - Kuwait, Bahrain, Qatar, Muscat, Oman and the UAE (Abu Dhabi, Ajman, Dubai, Fujairah, Ras-al-Khaimah, Sharjah, Kalba & Umm-al-Qiwain): Date of this Banknote issue: 11.05.1959:
The reasons for introduction of the Gulf Rupee:
- Towards the middle of the 20th Century, the Indian rupee was also used as the official currency in the Emirates on the eastern Arabian Peninsula, namely Kuwait, Bahrain, Qatar, the Trucial States, and Oman.
As such, the Indian rupee was the common currency in those territories, as well as, in India.
- The Government of India had come across several incidents/instances of gold traffickers in the Gulf region whose base of operations was constantly being broadened, especially in Kuwait, Bahrain and Dubai.
- Smugglers used to take gold to the Indian sub-continent and return with Indian rupees which were valid for circulation in the region and were exchanged for more valuable foreign currencies to be used by the smugglers to buy more gold.
- The problem got compounded by the fact that the Guld Rupee when presented in India was exchanged in foreign exchange equivalent, which resulted in depletion of the Indian Foreign Exchange Reserves.
- Towards the end of the 1950s, the volume of gold trafficking had become so large that it inevitably precipitated a serious depletion in the foreign cash reserves at the Indian Reserve Bank and was causing economic damage arising directly from the smuggling operations.
- As a result of the strain on India's foreign reserves, in 1959 the Indian government created the Gulf Rupee, initially at par with the Indian rupee. It was introduced as a replacement for the Indian rupee for circulation exclusively outside the country.
The Gulf Rupee Banknotes - highlights:
- Banknotes were issued in denominations of 1 (One) Rupee by the Government of India, while 5 (Five), 10 (Ten) and 100 ( One Hundred) Rupees by the Reserve Bank of India.
- The Banknotes were in designs very similar to the standard Indian notes but were printed in different colours.
- While the 1 rupee and 10-rupee notes were printed in red, the 5-rupee notes were printed in orange and the 100-rupee notes were printed in green.
- The serial numbers of the banknotes issued in all denominations were prefixed by the alphabet - "Z".
- The Gulf Rupee Banknotes bearing the prefix "Z" were now payable only at the office of issue - Bombay (present day Mumbai).
-The Gulf Rupee became the official currency used in the British protectorates of the Arabian Peninsula that are around the Persian Gulf between 1959 and 1966.
- These areas today form the countries of Kuwait, Bahrain, Qatar, Oman, and the United Arab Emirates (UAE).
- The Gulf Rupee was issued by the Government of India and the Reserve Bank of India and was equivalent to the Indian rupee.
- Effectively, the common currency area now did not include India.
- On 06.06.1966, India devalued the Gulf rupee against the Indian rupee.
Following the devaluation of the Gulf Rupee, several of the states still using the Gulf rupee adopted their own currencies:
Kuwait adopted the Kuwaiti Dinar in 1961, pegged to the Indian rupee, which was still pegged to the pound sterling.
Bahrain created the Bahraini Dinar in 1965, at the rate of 1 Dinar = 10 Rupees.
Qatar and most of the Trucial States (after 1971, United Arab Emirates) adopted the Qatar and Dubai Riyal, which was equal to the Gulf rupee prior to its devaluation, (effectively the Indian rupee value).
Abu Dhabi used the Bahraini dinar until 1973.
Oman continued to use the Gulf rupee until 1970, with the government backing the currency at its old peg to the pound, when it adopted the Omani Rial.
A Rs. 10 (Ten Rupees) Gulf Rupee Banknote:
Notice that the Emblem does not contain the words "Satyameva Jayate" ("Truth will Always Prevail") which were introduced below the emblem in the 1980s.
The Banknote bears the numeral "10" at top left and right. In the centre is "Reserve Bank of India" (the issuing authority). Notice that the Promise to pay a sum of Rs.10 clause specifically mentions that that payment will be made at the office of issue - Bombay.
This Banknote has been signed by HVR Iyengar RBI Governor from 01.03.1957 to 28.02.1962.
The colour of this Banknote is predominantly Rose Carmine, Blue and multicoloured.
There are seven Regional Languages in the Language Panel.
The denomination "Rupees Ten" is mentioned in English at left, and in Hindi at right.
The name of the issuing authority - "Reserve Bank of India" is mentioned at top centre, while the RBI logo is at bottom centre.
(The above Banknote is from the collection of my friend Jayant Biswas who is an avid Numismatist and Philatelist. Post researched and written by Rajeev Prasad)
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