Among the earliest issues of paper rupees were those by the Bank of Hindustan (1770–1832), the General Bank of Bengal and Bihar (1773–75, established by Warren Hastings), the Bengal Bank (1784–91), amongst others.The Paper Currency Act of 1861 gave the Government the monopoly of note issue throughout the vast expanse of India, which was a considerable task. Eventually, the management of paper currency was entrusted to the Mint Masters, the Accountant Generals and the Controller of Currency.After Independence of India, the government brought out the new design Re. 1 note in 1949. Initially it was felt that the King's portrait be replaced by a portrait of Mahatma Gandhi. Finally however, the Lion Capital of Asoka was chosen. The new design of notes were largely along earlier lines. In 1953, Hindi was displayed prominently on the new notes. The economic crisis in late 1960s led to a reduction in the size of notes in 1967.
The one rupee note of India is most unique in its nature .It doesnot bear the signature of The Governor of Reserve Bank of India but it is signed by the Finance secretary of India .In India, the Permanent Secretary - level civil servant, who plays a leadership role in the bureaucracy of the Finance Ministry is known as the Finance Secretary.One rupee note is referred as currency note and rest higher denominations are called bank notes this is because for one rupee note finance ministry has the authority to issue or print these notes so finance secretary will sign where as for other denominations only RBI governor has authority to issue or print.The Reserve Bank of India began note production in 1938, issuing 2, 5, 10, 50, 100, 1000 and 10000 rupee notes, while the Government continued to issue 1 rupee notes.The one rupee is not the actual legal tender of the country. On one side of the note we can see a large Circular watermark window with Ashokan Pillar as watermark and one Rupee in Hindi in the centre. Front of 1 Rupee coin image on top right.The colour of the note is Blue, Brown, Pink and Deep Purple .The note is signed by R. N. Malhotra who lateron became a reserve bank governor .On the reverse side there is a image of 'Sagar Samrat' offshore oil rig and back of 1 Rupee coin image on top left side.Production of 1 Rupee denomination was discontinued since March 1994 by Government of India