Burma Currency Board Overprint on British India Banknotes

Explore the Burma Currency Board Overprint on British India Banknotes, a pivotal development in Burma's post-WWII monetary history. Issued from 1947, these unique overprinted Indian currency notes in 1, 5, 10, and 100 Rupees played a critical role in the nation's transition. Building upon the currency changes during the British Military Administration of Burma, the establishment of the Burma Currency Board by the Currency and Coinage Act, 1946, marked a new era. This article will delve into the details of this Act, the Board itself, and the features of the banknotes it issued, reflecting a crucial period of economic reorganization.

British Currency Boards

During the early and mid-20th century, the British Empire established several currency boards across its colonies to streamline monetary policy and maintain economic stability. These currency boards played a crucial role in managing the economies of various regions by issuing and regulating currency. Notable currency boards that had their names printed on banknotes included the West African Currency Board, the East African Currency Board, and the Malayan Currency Board or the Board of Commissioners of Currency Malaya.

The West African Currency Board (WACB) was established earlier, in 1912, to serve British West African colonies, including Nigeria, the Gold Coast (now Ghana), Sierra Leone, and the Gambia. The East African Currency Board (EACB) was established in 1919 to serve the British colonies of Kenya, Uganda, and Tanganyika (now Tanzania). The Malay States and the Straits Settlements joined together to form the Malayan Currency Board in 1938, and then in 1952 they included the Borneo territory.

The Currency and Coinage Act, 1946

The Currency and Coinage Act, 1946 (Burma Act XLV of 1946) was published on 20 December 1946. This Act is the key legislature concerning the formation of the Burma Currency Board.

Key provisions of the Act are as follows:

Section 2:

“Board” means the Burma Currency Board constituted under this Act.

“Burma notes” means Burma notes of denominations of Rs 100 or less issued by the India and Burma (Burma Monetary Arrangements) Order, 1937, British Military Administration notes issued under Currency Proclamation No. 6 of 1945 and notes issued under the Currency Notes Act, 1946;

“Currency notes” means notes issued by the Board under the provisions of this Act which have not been withdrawn from circulation by notification under this Act;

Section 3: There shall be constituted for British Burma a Board to be called the Burma Currency Board. It shall be a body corporate and may sue, and be sued, in the name of the Burma Currency Board.

Section 4: The Board shall be appointed by the Governor and shall consist of the following five members, namely:
(a) a Chairman, to be nominated by the Governor;
(b) two members who shall be persons born and domiciled within the dominions of His Majesty in Burma of parents habitually resident in Burma, and not established there for temporary purposes only, nominated by the Governor;
(c) one who shall be nominated by the Secretary of State for Burma; and
(d) one who shall be nominated by the Governor of the Bank of England.

Section 10: (1) The standard unit of monetary value in Burma shall be Burma rupee. 
(2) The Burma rupee shall be divided into sixteen annas.

Section 13: (1) Currency notes issued under this Act shall be of such form and design and be printed from such plates and on such paper and be authenticated in such manner as the Board may, with the approval of the Governor from time to time determine.
(2) The plates shall be prepared and kept and the notes printed in accordance with such conditions as the Board may, from time to time, determine.

Section 16(4): If the Governor after consultation with the Board should consider it desirable that India notes should be legal tender in British Burma the Governor may by notification declare that such notes shall be legal tender for such period or periods as he may by notification determine.

Denomination of Currency Notes as mentioned in the First Schedule of the Act are
1. One rupee currency note
2. Five rupee currency note
3. Ten rupee currency note
4. Hundred rupee currency note

This Act repealed The Burma Coinage Act (India Act III of 1906), The Currency Act, 1940 (Burma Act XVI of 1940), and The Currency Notes Act, 1946 (Burma Act XXV of 1946).

Burma Currency Board

After World War II, on 20 August 1945, the Reserve Bank of India reopened in Rangoon, and the British Military Administration of Burma took control of the currency, which issued King George VI banknotes of India overprinted with the text “Military Administration of Burma Legal Tender in Burma Only.” The issuance of banknotes by the Military Administration was a temporary measure and there was a need to issue banknotes by a civilian body.

The idea of forming the Burma Currency Board (BCB) was formally decided by the Governor’s Executive Council in May 1946. This decision was followed by a series of drafting committee meetings led by Raymond Kershaw from the Bank of England. The BCB was modeled after the West African Currency Board.

The Currency and Coinage Act (Burma Act XLV of 1946), published on 20 December 1946, officially established the BCB. The Board's first governing body included prominent figures such as Sir Richard Valentine Nind Hopkins (Chairman), Maung Kaung, Saw Htin Lin Mya, W. Johnston, and Raymond Kershaw. Sir Sydney Turner served as Secretary, and U San Lin was the Currency Officer in Rangoon. 1000 Rupees and 10000 Rupees denominations of the old Burma notes were demonetized as per the Exchange of High Denomination Burma Notes Rules (1946).

The Burma Currency Board formally began operations on 1 April 1947, following the severance of Burma's currency link to the Indian rupee in June 1946. The BCB's main functions included managing the currency supply, maintaining public confidence in the new currency, and ensuring economic stability. The Board was responsible for issuing a new, independent Burmese currency in denominations of 1, 5, 10, and 100 rupees. To back this issuance, the British government transferred sterling assets worth £31.3 million into the BCB fund, ensuring the stability and reliability of the new currency.

As there was a stock of Indian banknotes left by the British Military Administration of Burma that had not been overprinted, the Burma Currency Board overprinted the leftover stock of 1 Rupee, 5 Rupee, 10 Rupee, and 100 Rupee banknotes with the text “BURMA CURRENCY BOARD LEGAL TENDER IN BURMA ONLY.”

The Burma Currency Board was a crucial institution in Burma's post-war recovery and transition to independence. By managing the issuance and stability of the new Burmese currency, the BCB helped restore economic order and confidence. Its efforts were foundational in setting the stage for the establishment of the Union Bank of Burma, which took over the BCB's functions on 31 December 1952, marking the end of the BCB's significant yet brief existence. The transition to the Union Bank of Burma symbolized the country's move towards a fully independent financial system.

1 Rupee Overprint Banknote

The banknote is overprinted over the Government of India 1 Rupee banknote which has the portrait of King George VI at the upper right that has a green serial number with an inset letter A. The overprint text is in red.

Denomination: 1 Rupee
Issuer: Military Administration of Burma
Size: 101 x 63 mm
Color: Blue-gray
Obverse Design: King George VI facing left
Reverse Design: 1 rupee coin dated 1940; Language panel
Date: None
Signature: C.E. Jones
Material: Paper
Security Thread: None
Watermark: King George VI facing right
Printer: India Security Press
Serial number color: Green serial number with A inset letter
Prefixes: K/27-66, Q/17-36
Catalog Number: Banknote Book B601; Pick 30

5 Rupee Overprint Banknote

The note is overprinted over the Reserve Bank of India 5 Rupee banknote which has the portrait of King George VI facing left and the signature of C.D. Deshmukh. The overprint text is in bluish-black.

Denomination: 5 Rupee
Issuer: Military Administration of Burma
Size: 101 x 73 mm
Color: Brown, violet and green
Obverse Design: King George VI facing left
Reverse Design: Language panel
Date: None
Signature: C.D. Deshmukh
Material: Paper
Security Thread: None
Watermark: King George VI facing right and text
Printer: India Security Press
Prefixes: R/24 - R/41
Catalog Number: Banknote Book B602; Pick 31

10 Rupee Overprint Banknote

The note is overprinted over the Reserve Bank of India 10 Rupee banknote which has the portrait of King George VI facing front and the signature of C.D. Deshmukh. The overprint text is in red.

Denomination: 10 Rupee
Issuer: Military Administration of Burma
Size: 137 x 77 mm
Color: Violet, brown, olive green, orange and blue
Obverse Design: King George VI facing front
Reverse Design: Language panel; Sailboat
Date: None
Signature: C.D. Deshmukh
Material: Paper
Security Thread: None
Watermark: King George VI facing front and text
Printer: India Security Press
Prefixes: G/31-42, H/73-82, J/43-50.
Catalog Number: Banknote Book B603; Pick 32

100 Rupee Overprint Banknote

The note is overprinted over the Reserve Bank of India 100 Rupee banknote which has the portrait of King George VI facing left with Calcutta as the office of issue and the signature of C.D. Deshmukh and black serial number. The overprint text is in red.

Denomination: 100 Rupee
Issuer: Military Administration of Burma
Size: 171 x 107 mm
Color: Green, pink and orange
Obverse Design: King George VI facing left
Reverse Design: Language panel; Tiger
Date: None
Signature: C.D. Deshmukh
Material: Paper
Security Thread: None
Watermark: King George VI facing right and text
Printer: India Security Press
Prefixes: B/47 600001 - 1000000, B/52 entire prefix, B/53 000001 - 800000
Catalog Number: Banknote Book B604; Pick 33

Conclusion

The Burma Currency Board overprint banknotes represent an essential bridge between Burma's colonial past and its impending independence. These banknotes, overprinted with the text "BURMA CURRENCY BOARD," served as an interim solution, leveraging the remaining stock of Indian banknotes to ensure economic stability during the transitional period. The significance of the BCB overprint banknotes lies in their role in establishing a sense of monetary autonomy and preparing the groundwork for an independent financial system.

As Burma moved towards independence, the focus shifted from British-issued currencies to those issued by the new Burmese government. The next article will explore the issuance of banknotes by the Government of Burma and the Government of the Union of Burma, marking a new chapter in the nation's financial history. These banknotes symbolize Burma's journey to sovereignty and its efforts to establish a distinct and independent monetary system.

Frequently Asked Questions

Q: What was the Burma Currency Board (BCB) and when was it established?

A: The Burma Currency Board (BCB) was a civilian body established by the Currency and Coinage Act, 1946 (Burma Act XLV of 1946), published on 20 December 1946. It formally began operations on 1 April 1947, and was tasked with managing Burma's currency supply and ensuring economic stability after World War II.

Q: Why did the Burma Currency Board issue overprinted banknotes?

A: The BCB issued overprinted banknotes as a practical interim solution. There was a leftover stock of Indian banknotes from the British Military Administration that had not been overprinted. The BCB overprinted these existing notes with "BURMA CURRENCY BOARD LEGAL TENDER IN BURMA ONLY" to swiftly introduce a stable and recognized currency.

Q: What denominations were issued by the Burma Currency Board as overprinted banknotes?

A: The Burma Currency Board issued four denominations of overprinted banknotes: 1 Rupee, 5 Rupee, 10 Rupee, and 100 Rupee.

Q: What was the "Currency and Coinage Act, 1946" and its significance for the Burma Currency Board?

A: The Currency and Coinage Act, 1946, was the key legislation that formally constituted the Burma Currency Board (BCB). It outlined the Board's powers, composition, and functions, including the authority to issue currency notes and establish the Burma rupee as the standard unit of monetary value.

Q: When did the Burma Currency Board cease operations?

A: The Burma Currency Board's significant but brief existence concluded on 31 December 1952. Its functions were then taken over by the Union Bank of Burma, symbolizing the country's move towards a fully independent financial system.