Government of Nepal Banknotes: 1945 to 1960

Before the introduction of Nepal’s banknotes, Indian banknotes were widely used in Nepal. The transition from using Indian banknotes to issuing Nepal's currency by the Sadar Muluki Khana (Central Treasury), marked a new era in Nepal's monetary history. The Government of Nepal issued its first series of banknotes in 1945, followed by a second series in 1953, both of which featured distinct design elements and cultural symbols. This article explores the history, series, and design of these banknotes, issued during the reign of King Tribhuvan, a key figure in Nepal's modern history.

Mohru: The Currency of Nepal

The term "Mohru" was commonly used in Nepal to refer to the currency, despite the English text on the reverse of the banknotes indicating "Rupee." This linguistic distinction highlights the unique cultural aspects of Nepal's currency system. The use of "Mohru" reflected the local language and traditions, even as Nepal began to modernize its financial infrastructure. This dual nomenclature can be traced back to the historical and cultural context of the region, where local languages and terminologies coexisted with those introduced by foreign influences.

The "Mohru" was not just a unit of currency but also a symbol of Nepal's sovereignty and cultural identity. As Nepal moved away from using Indian banknotes, the adoption of the Mohru in its banknotes marked a significant step towards economic independence. The transition to a distinct currency system was crucial for the country's efforts to assert its national identity on the global stage.

King Tribhuvan

King Tribhuvan Bir Bikram Shah, the 8th monarch of the Shah dynasty, is widely regarded as the architect of Nepal's modern era. Born on June 30, 1906, Tribhuvan ascended the throne at a young age following the death of his father, King Prithvi Bir Bikram Shah. His first reign from 11 December 1911 to 7 November 1950 was largely overshadowed by the autocratic Rana regime, which wielded true power in Nepal at the time, reducing the monarchy to a ceremonial role.

In 1950 when he sought asylum in India, signaling his defiance against the Ranas and his support for the democratic movement. This bold move led to a series of events that culminated in the signing of the Tripartite Agreement in 1951. This agreement resulted in the establishment of a democratic government in Nepal, with King Tribhuvan reinstated as the head of state from 7 January 1951 to 13 March 1955. King Tribhuvan's image is featured on the obverse of the 5 Mohur, 10 Mohur, and 100 Mohur banknotes of the first two series, and also in the watermark of all denominations of the two series.

Linguistic and Design Features

The banknotes issued by the Government of Nepal from 1945 to 1960 were notable for their distinctive linguistic and design features. Nepali text dominated the banknotes, except for the denomination on the reverse, which was in English. The prefix of the serial numbers used Nepali letters, while the serial numbers themselves were written in Nepali numerals. This design choice emphasized the cultural significance of the Nepali language and script in the country's monetary system.

The higher denominations, particularly the 5 Mohru, 10 Mohru, and 100 Mohru, featured King Tribhuvan's portrait on the obverse, reinforcing the monarch's role in the nation's identity. The inclusion of national symbols, traditional motifs, and unique patterns further distinguished these banknotes. The use of traditional elements in the design not only made the banknotes aesthetically pleasing but also served as a medium to showcase Nepal's rich cultural heritage.

The First Series of Nepal Banknotes

The first series of Nepalese banknotes comprised three denominations: 5 Mohru, 10 Mohru, and 100 Mohru. The Nepali text on top of these banknotes read "Shree Nepal Sarkar," indicating the authority of the Government of Nepal. These notes were issued in two varieties, distinguished by the signatures of Janak Raj Pandit and Bharat Raj Pandit. The first variety, signed by Janak Raj Pandit, was introduced on 17 September 1945. The second variety, signed by Bharat Raj Pandit, was introduced in 1948.

5 Mohru Banknote

The 5 Mohru banknote is a violet-brown note, sized 126 x 73 mm. The obverse design featured a portrait of King Tribhuvan wearing a plumed crown and the Himalayan mountains. The reverse design depicted a tiger in the jungle, symbolizing the rich wildlife of Nepal. The domination shown in English on the reverse is Five Rupees. Security features included a watermark of the king’s portrait. The banknote was printed by the India Security Press in Nasik.

Denomination: 5 Mohru / 5 Rupees
Issuer: Government of Nepal
Size: 126 x 73 mm
Color: Violet and brown
Obverse Design: King Tribhuvan wearing a plumed crown
Reverse Design: Tiger
Date: None
Material: Paper
Security Thread: None
Watermark: King Tribhuvan
Printer: India Security Press

Variety 1:
Signature: Janak Raj Pandit
Issue Date: 17 September 1945
Prefix: क (Ka)
Quantity: approximately 660,000
Catalog Number: Banknote Book B101a; Pick 2a

Variety 2:
Signature: Bharat Raj Pandit
Issue Date: 1948
Prefix: क (Ka) & ख (Kha)
Quantity: approximately 960,000
Catalog Number: Banknote Book B101b; Pick 2b

10 Mohru Banknote

The 10 Mohru banknote is characterized by its gray-blue color and measures 146 x 82 mm. The obverse design featured a portrait of King Tribhuvan alongside the Guheshwari Temple, an important religious site in Nepal. The reverse design displayed the national crest, peacocks, snakes, and flowers. The domination in English on the reverse is Rupees Ten. This note also included a watermark of the king’s portrait and was printed by the India Security Press in Nasik.

Denomination: 10 Mohru / 10 Rupees
Issuer: Government of Nepal
Size: 146 x 82 mm
Color: Gray-blue
Obverse Design: King Tribhuvan wearing a plumed crown
Reverse Design: National crest
Date: None
Material: Paper
Security Thread: None
Watermark: King Tribhuvan
Printer: India Security Press

Variety 1:
Signature: Janak Raj Pandit
Issue Date: 17 September 1945
Prefix: क (Ka)
Quantity: approximately 320,000
Catalog Number: Banknote Book B102a; Pick 3a

Variety 2:
Signature: Bharat Raj Pandit
Issue Date: 1948
Prefix: क (Ka) & ख (Kha)
Quantity: approximately 540,000
Catalog Number: Banknote Book B102b; Pick 3b

100 Mohru Banknote

The 100 Mohru banknote is a dark green and purple note, measuring 171 x 108 mm. The obverse design featured a portrait of King Tribhuvan and the Pashupatinath Temple, a significant religious site and UNESCO World Heritage Site in Nepal. The reverse design showcased an Asian rhinoceros or one-horned rhinoceros. The domination in English on the reverse is Rupees One Hundred. Like the other denominations, this note included a watermark of the king’s portrait and was printed by the India Security Press in Nasik.

An interesting feature of the 100 Mohru banknote is the inclusion of two serial numbers on the left and right sides of the note. This practice, common in high-denomination banknotes in India, allowed the banknote to be bisected, with one half used as a deposit receipt and the other half retained for later redemption. This system provided practicality in financial transactions involving large sums.

Denomination: 100 Mohru / 100 Rupees
Issuer: Government of Nepal
Size: 146 x 82 mm
Color: Gray-blue
Obverse Design: King Tribhuvan wearing a plumed crown
Reverse Design: National crest
Date: None
Material: Paper
Security Thread: None
Watermark: King Tribhuvan
Printer: India Security Press

Variety 1:
Signature: Janak Raj Pandit
Issue Date: 17 September 1945
Prefix: क (Ka)
Quantity: approximately 45,000
Catalog Number: Banknote Book B103a; Pick 4a

Variety 2:
Signature: Bharat Raj Pandit
Issue Date: 1948
Prefix: क (Ka)
Quantity: approximately 90,000
Catalog Number: Banknote Book B103b; Pick 4b

The Second Series of Nepal Banknotes

The second series of Nepal banknotes, introduced in 1953, saw a change in the Nepali text at the top center front, from "Shree Nepal Sarkar" to "Shree Nepal Sarakar." This subtle change in text represented a formalization in the issuance of banknotes. Additionally, this series featured the signature of Narendra Raj Pandit. A notable addition to the second series was the introduction of the 1 Mohru denomination, expanding the range of available to include four denominations: 1 Mohru, 5 Mohru, 10 Mohru, and 100 Mohru.

1 Mohru Banknote

The 1 Mohru banknote was a new addition in the second series and represented the lowest denomination. The note is gray-blue and measures 101 x 65 mm. Unlike the other denominations, the obverse design did not feature a portrait of the king. Instead, it depicted a temple, an elephant, and a one-rupee coin, The reverse design included a kalash (holy vase), crossed khukuri (blade weapon), conch shell, and the reverse of a one-rupee coin, with the coin image on the left. The use of one-rupee coin reflected the influence of Indian banknotes which also use rupee-one on 1 Rupee banknotes.

Unlike the higher denomination notes which use a single Nepali alphabet as the prefix, the 1 Mohru note uses a fractional prefix with the Nepali alphabet on top and Nepali numbers at the bottom. Security features included a watermark of the king’s portrait, and the note was printed by the India Security Press in Nasik.

Denomination: 1 Mohru
Issuer: Government of Nepal
Size: 101 x 65 mm
Color: Gray-blue
Obverse Design: Obverse of 1-rupee coin
Reverse Design: Reserve of 1-rupee coin
Date: None
Material: Paper
Security Thread: None
Watermark: King Tribhuvan
Printer: India Security Press
Signature: Narendra Raj Pandit
Issue Date: 1953
Prefix: क (Ka) 0 to क (Ka) 27
Quantity: approximately 28 million
Catalog Number: Banknote Book B104; Pick 1b

5 Mohru Banknote

The 5 Mohru banknote in the second series retained its violet-brown color and size of 126 x 73. The obverse design continued to feature a portrait of King Tribhuwan, while the reverse design showed a tiger in the jungle. The security features and printer remained the same as the first series.

Denomination: 5 Mohru / 5 Rupees
Issuer: Government of Nepal
Size: 126 x 73 mm
Color: Violet and brown
Obverse Design: King Tribhuvan wearing a plumed crown
Reverse Design: Tiger
Date: None
Material: Paper
Security Thread: None
Watermark: King Tribhuvan
Printer: India Security Press
Signature: Narendra Raj Pandit
Issue Date: September 1953
Prefix: ख (Kha), ग (Ga), घ (Gha), ङ (Nga), च (Cha), छ (Chha), ज (Ja), झ (Jha), ञ (Nya)
Quantity: approximately 8.4 million
Catalog Number: Banknote Book B105; Pick 5

10 Mohru Banknote

The 10 Mohru banknote in the second series also retained its grey-blue color and size of 82 x 146 mm. The obverse design continued to feature King Tribhuwan and the Guheshwari Temple, with the reverse design displaying the national crest. The watermark and printer were consistent with the first series.

Denomination: 10 Mohru / 10 Rupees
Issuer: Government of Nepal
Size: 146 x 82 mm
Color: Gray-blue
Obverse Design: King Tribhuvan wearing a plumed crown
Reverse Design: National crest
Date: None
Material: Paper
Security Thread: None
Watermark: King Tribhuvan
Printer: India Security Press
Signature: Narendra Raj Pandit
Issue Date: September 1953
Prefix: क (Ka), ख (Kha), ग (Ga), घ (Gha), ङ (Nga), च (Cha), छ (Chha), ज (Ja), झ (Jha), ञ (Nya), ट (Ta), ठ (Tha), ड (Da)
Quantity: approximately 12.14 million
Catalog Number: Banknote Book B106; Pick 6

100 Mohru Banknote

The 100 Mohru banknote in the second series remained dark green and purple, with a size of 108 x 171 mm. The obverse design featured King Tribhuwan and the Pashupatinath Temple, while the reverse design showcased an Asian rhinoceros. The security features and printer were the same as the first series.

Denomination: 100 Mohru / 100 Rupees
Issuer: Government of Nepal
Size: 146 x 82 mm
Color: Gray-blue
Obverse Design: King Tribhuvan wearing a plumed crown
Reverse Design: National crest
Date: None
Material: Paper
Security Thread: None
Watermark: King Tribhuvan
Printer: India Security Press
Signature: Narendra Raj Pandit
Issue Date: September 1953
Prefix: क (Ka)
Quantity: approximately 450,000
Catalog Number: Banknote Book B107; Pick 7

Conclusion

The introduction of the Government of Nepal banknotes marked a significant step towards the modernization of Nepal's monetary system. However, the most transformative development came with the establishment of the Nepal Rastra Bank, formed by the Nepal Rastra Bank Act of 1955. The central bank began operations on 26 April 1956, taking over the responsibilities of the Sadar Muluki Khana in issuing and managing the country's currency. In 1960, the Nepal Rastra Bank started issuing its banknotes, marking the end of the Government of Nepal's direct involvement in currency issuance.