
Banknote is a promissory note, issued by a bank, which is payable to the bearer on demand. It is also known as a ‘bill’ or a ‘note’. According to the existing records, the paper money was first used way back in 7th Century in China. However, the first fully printed banknote appeared in 1853. The banknotes are issued by the Central Bank of the respective countries. In addition to this, the Central Bank is also responsible for the destruction of the unfit banknotes for circulation. Traditionally, cotton paper was used in manufacturing of the banknotes. However, due to high destruction rate of cotton banknotes, polyester substrates are now used in manufacturing of banknotes called polymer banknotes. The banknote issuing authorities are focused to provide high standards of quality and security, apart from ensuring adequate public confidence in the currency. The global banknote issuance is on a continual rise and the same is expected to grow further in the future.