The Inset first appeared in 1945 on a One Rupee Banknote of Government of India with the portrait of King George VI signed by C. E. Jones, Secretary, Finance Department. This was necessitated because of the completion of the prefix 'A' to 'Z'. A new type with inset 'A' again commenced from prefix 'A' to 'W' with green serial numbers. Post independence, the Government of India in 1955 first introduced an Inset on One Rupee notes dated 1951 signed by H. M. Patel, Finance Secretary, Ministry of Finance.
Bank of Hindostan, a Private Bank issued the first banknotes of India in 1770. The lowest denomination in early issued banknotes was Rupees Ten and the highest was Rupees Ten Thousand.
The early banknotes were exchanged for silver or gold coins or vice versa.