Did you know Reserve Bank of India once printed currency for Pakistan? State Bank of Pakistan acknowledged by..., UAE, Oman also...
New Delhi: The Radcliffe Line refers to the boundary drawn by British lawyer Sir Cyril Radcliffe during the 1947 partition of British India. This line divided the provinces of Punjab and Bengal into two separate territories: India and Pakistan. The partition was a result of the Indian Independence Act of 1947, which aimed to create two independent nations, India and Pakistan, based on religious lines.
But did this Radcliffe Line actually provide the resources both countries truly needed? In fact, the British man who drew this line, Radcliffe, had never even visited India. After the partition, Pakistan especially lacked essential resources. In such a situation, it was India that extended full support.
Since 1947, India has provided a slew of assistance to bankrupt Pakistan. The Reserve Bank of India even printed currency notes for its neighboring country between August 1947 and September 1948. At the time of Partition, Pakistan had no infrastructure.
According to a media report quoting Quora.com, current affairs commentator Aamir Khokhar wrote that Pakistan was unable to establish a central bank. It was then decided that the Reserve Bank would function as the state bank for both India and Pakistan. Since the Reserve Bank already existed in India, it helped Pakistan without any hesitation. State Bank of Pakistan Acknowledged the Role
It is important to note that the official website of the State Bank of Pakistan has acknowledged the services of the Reserve Bank of India. In 1947, during the India-Pakistan partition, the Reserve Bank of India acted as the central bank for both countries. Soon after the partition, the Reserve Bank of India took the responsibility of currency circulation since establishing a central bank in Pakistan was not an easy task.
According to media reports, the State Bank of Pakistan states that the Governor-General of undivided India issued the 'Pakistan (Monetary System and Reserve Bank) Order, 1947' on 14 August 1947. This order stated that until a central bank was established in Pakistan, the RBI would handle all currency-related matters.
Until September 30, 1948, the Reserve Bank was made the common authority for both India and Pakistan. In this way, until 30 September 1948, the RBI fulfilled all of Pakistan's financial needs and managed its monetary system. RBI Printed Notes for These Countries Too
The Reserve Bank of India not only printed notes for Pakistan but also for several Gulf countries like the UAE, Oman, and Bahrain. This practice continued until 1967, and until then, the Gulf countries used the Indian Rupee.
It is also recorded in the history of the RBI that it printed currency notes for Pakistan for nearly a year. At that time, the Reserve Bank had an office in Lahore, which was later closed down.
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