Viral Rs 5 Note Shows Pakistan Used Indian Currency In 1947

The end of the British rule in India on August 15, 1947, also led to the creation of Pakistan. The creation of the new country after the division of the subcontinent also necessitated the sharing of assets and management of liabilities between both the countries. One of the main issues was currency management, especially for Pakistan.

The Indian government decided to allow the use of its currency in Pakistan temporarily. The current was modified to be stamped with the ‘Government of Pakistan’ to make it legal tender in the newly created nation. After Partition, Pakistan continued to use the currency notes printed in India for nearly a year.

A Rs 5 note from the 1947-48 period has gone viral on Reddit.

After Partition of British India in 1947, the Indian rupees were altered to make them legal tender in the newly formed country of Pakistan. This involved overprint with the words ‘Government of Pakistan’ in English on the notes and Hakumat-e-Pakistan in Urdu on them.

The Reserve Bank of India (RBI), at that time headed by CD Deshmukh, was the central bank for both countries till September 30, 1948. During this period, Indian notes were overprinted for use in Pakistan to avoid the instability of currency during the transition phase.

Subsequently, the State Bank of Pakistan was formed on July 1, 1948, and it was entrusted with the responsibility of managing the currency.

The Indian Rs 5 currency note from the pre-Independence period had the image of King George VI on it. This used to be in circulation during the last few days of the British Raj. After India became a free nation on August 15, 1947, the RBI issued notes with portraits of King George VI for some time before new portraits were adopted.

A Reddit user questioned, “Was it the agreement with the Brits?” on the usage of images of British rulers on Indian currency. Another user responded by explaining that as no Constitution had been drafted prior to independence, the government structure remained largely unchanged from the Government of India Act of 1935, with minor modifications made to the Indian Independence Act of 1947.