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How Bangladesh Introduced Its First One Taka Note—and Phased Out Pakistani Currency

Bangladesh’s first one taka note was issued on 4 March 1972 and printed in India. The change from Pakistani currency took place through separate legal measures and denomination-specific withdrawal dates.
From TheFinanceBase Team3 min to read
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Bangladesh’s first one taka note was issued on 4 March 1972 and printed in India, but it did not by itself end the use of Pakistani currency. The transition combined a new national currency framework with separate orders withdrawing Pakistani banknotes by denomination: Rs 50 notes lost legal-tender status on 5 March 1972, while Rs 5 and Rs 10 notes did so on 8 June.

When did Bangladesh issue its first one taka note?

The first one taka note of independent Bangladesh was issued on 4 March 1972. A specialist banknote catalog identifies the Government of Bangladesh as its issuer, Finance Secretary K. A. Zaman as the signatory, and a map of Bangladesh as its principal obverse image. The catalog and a 2016 historical report identify India Security Press, in India, as the printer. The catalog entry and the report support these note-specific details; they do not establish that later Bangladesh notes were also printed there.

The note made a visible statement of national monetary identity, but issuance and withdrawal were separate parts of the currency transition. The note’s introduction should not be treated as the single act that removed all Pakistani currency from circulation.

How the legal transition worked

Three legal steps are important to distinguish: temporary recognition of Pakistani notes, withdrawal of particular Pakistani denominations, and authorization of Bangladesh government notes.

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Date Measure Effect
25 December 1971 A temporary order recognized Pakistani notes as legal tender in Bangladesh, as later recited in the Rs 50 withdrawal order. Pakistani notes continued to have legal-tender status under the temporary arrangement. President’s Order No. 20 of 1972
4 March 1972 The first Bangladesh one taka note was issued. A national note entered circulation; the Pakistani-note withdrawal dates were set by separate orders. Specialist catalog
5 March 1972 Pakistani Rs 50 notes ceased to be legal tender. The date was set by President’s Order No. 20 of 1972. Order text
8 June 1972 Pakistani Rs 5 and Rs 10 notes ceased to be legal tender. The date was set by President’s Order No. 61 of 1972. Order text
24 July 1972 The Bangladesh Currency Order, 1972 was promulgated. It authorized government one taka notes, repealed the Pakistan Currency Act, 1950, and was deemed effective from 26 March 1971. Order text

Withdrawal depended on denomination

The dates show why it is misleading to describe the change as an overnight replacement. Rs 50 notes lost legal-tender status one day after the first one taka note was issued. Rs 5 and Rs 10 notes remained legal tender until 8 June. These orders establish legal-tender cutoffs; they do not, by themselves, document when every note disappeared from everyday use.

The Currency Order supplied the national legal framework

The Bangladesh Currency Order, 1972 gave the government authority to issue Bangladesh one taka notes and repealed the Pakistan Currency Act, 1950. Although promulgated on 24 July 1972, it was deemed to have taken effect from 26 March 1971. The official text is available at Laws of Bangladesh. Its authorization of national notes and the denomination-specific withdrawal orders were connected elements of the transition, not interchangeable legal acts.

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Why were Pakistani notes withdrawn?

The withdrawal orders state the government’s rationale; they should be read as official claims in the legal texts, not as independently established findings. President’s Order No. 20 of 1972 says that large quantities of currency notes had been illegally removed from government treasuries, the former State Bank of Pakistan, and bank offices and branches in Bangladesh before the surrender of Pakistani forces. It further says the notes might be used for activities prejudicial to the national economy. The order’s preamble is published at Laws of Bangladesh.

The later order covering Rs 5 and Rs 10 gives a broader stated reason: it says continued circulation of Pakistani banknotes of certain denominations was prejudicial to the national economy. That wording appears in the preamble to President’s Order No. 61 of 1972.

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What the 1972 note does—and does not—tell us

  • It marks an early national issue: the first Bangladesh one taka note was issued on 4 March 1972 and bore a map of Bangladesh, according to the specialist catalog. Catalog entry
  • Its Indian printing is documented for this issue: the catalog and 2016 report identify India Security Press as the printer. That is not evidence about the printer of every later Bangladesh note. Catalog entry · 2016 report
  • It was one part of a larger change: national-note authorization and Pakistani-note withdrawal were handled through distinct legal measures.
  • It does not establish quantities or economic effects: the cited material does not establish how many one taka notes were printed, the scale of their everyday use, or the economic consequences of the transition.

The specialist catalog reports that the 1972 one taka issue was withdrawn in March 1974. That date is reported by the catalog; a primary withdrawal notice is not identified here. Catalog entry

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