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Yet as the European traders began their commerce in India no form of paper currency existed. Private Banks were created, initially in the province of Bengal. The first such bank to implement paper money was established by Governor Warren Hastings in Calcutta around 1770 A.D. (Jhunjhunwalla Online).
Following the first Private Bank, the Bank of Bengal was formed. The paper money printed by the Bank of Bengal was circulated on a much wider basis, as well as being accepted as payment for certain government dues. The Bank of Bengal was the first bank in India to have a government share in its working capital...
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