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In 1938, the RBI issued the Rs 10,000 note. At that time, small coins like the 25-paise and 50-paise were not introduced until 1957.
RBI issued a Rs 10,000 note in 1938.
Did you know that India once issued a Rs 10,000 currency note? It may seem surprising, but this note was introduced in 1938, during a time when the country’s currency system still relied on coins like the one anna (1/16th of a rupee) and two anna. The Rs 10,000 note holds the distinction of being the largest denomination in our currency history. Here’s a look at why it was introduced and the reasons for its eventual discontinuation.
In 1938, the Reserve Bank of India (RBI) issued the Rs 10,000 note. At that time, such a high denomination might seem surprising, especially considering that small coins like the 25-paise and 50-paise were not introduced until 1957. The Rs 10,000 note was primarily introduced to facilitate large transactions among business people and traders, who needed a convenient way to handle substantial sums of money. During this era, ordinary citizens didn’t need to handle such large amounts, making the high denomination useful for trade and business purposes.
However, in January 1946, just eight years after its introduction, the British government decided to withdraw the Rs 10,000 note. This move came amid concerns over hoarding and the rise in black-market activities during the Second World War. The government believed that discontinuing such high-denomination currency would help curb these issues.
Despite its initial withdrawal, the Rs 10,000 note was reintroduced in 1954, along with other large denominations like the Rs 5,000 note. But by 1978, after India gained independence, both the Rs 5,000 and Rs 10,000 notes were again discontinued. These high-value notes had limited usage, primarily circulating in business transactions, and concerns over black-market dealings persisted.
By the mid-1970s, the total value of Rs 10,000 notes in circulation reached Rs 7,144 crore. Although there were discussions about reintroducing the Rs 5,000 and Rs 10,000 notes in the future, including a proposal from former RBI Governor Raghuram Rajan, these suggestions were ultimately rejected.
In the end, the Rs 10,000 note, once the largest denomination in India, became a part of the nation’s currency history, leaving behind lessons on economic policy and the challenges of managing high-value currency.
