Our Banknotes
Throughout the centuries, our banknotes have helped build trust and stability as well as reflecting national pride.
There are some surprising similarities - and differences - between our modern banknotes and our older ones.
1. Portrait
We were the first bank to feature a portrait of the monarch on our notes, and we carried on doing so right up until the 1960s. Since then, we've shown other important people, including the famous Scottish industrialist David Dale and Adam Smith, the father of economics.
Since 1987, the notes have carried a portrait of the Bank's founding Governor, Lord Ilay.
2. Date
Unlike the United States dollar, Euro and Bank of England sterling notes, Scottish banknotes are dated. Until the 20th century, this was done by hand at the time of issuing the note.
3. Number
Each banknote has a unique number, originally written onto the note by hand, and later printed. In the early days, this number helped the bank to track each banknote it issued. This became harder as circulation grew, but it was still a useful way of identifying general issue details, as well as a deterrent to counterfeiters.
4. Signatures
Originally, the notes were hand-signed by the Bank's accountant and cashier. As the size of the circulation increased, more junior bank officers began to sign notes 'pro cashier' ('for the cashier') on their behalf.
The last Scottish £1 note to be hand-signed was issued by us in 1935. Higher-value notes were still hand-signed for a little longer, but the practice finally died out in the 1960s.
5. Colour printing
We were the first bank in Europe to issue a multi-coloured note, when the 1777 one guinea note was printed in black, blue and red. The process was difficult and expensive, and other banks did not follow suit until the mid-19th century, when colour became a vital defence against counterfeiters working with the new techniques of photography.
6. Initials
The letters 'RBS' have been used to stand for The Royal Bank of Scotland's name on its banknotes since 1860.
7. Paper and watermarks
Banknotes have always needed to be printed on high quality paper because of wear and tear in circulation, as well as the demands of using many different printing techniques on one document.
In the early 18th century, many banks included watermarks in their notes, but the habit died out in the early 1800s. From 1861 onwards, however, we included our own name as a watermark in banknote paper. Other banks gradually followed and today watermarks are one of the most widespread banknote security measures across the world.
- How old is the Royal Bank?
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The Royal Bank of Scotland itself was established by royal charter on 31 May 1727. Some of our constituent businesses are even older, dating back as far as the 1580s. You can learn more about them at RBS Heritage On-line.
- Is it true that Scottish banknotes are not legal tender?
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Yes, it is - but Bank of England notes aren't legal tender in Scotland either. Officially, the phrase 'legal tender' means money that a person is obliged to accept if offered it in payment of a debt. Under Scottish law, that does not include banknotes, which are classified as 'legal currency' but not 'legal tender'.
The only historical exception was during the two world wars, when as a temporary measure the government made banknotes legal tender in Scotland, as a way of reinforcing people’s trust in them. This was important in a time of shortages, when the government needed to be sure that people would not hoard gold.