In India, the enthusiastic experiment by Muhammed Bin Tughlaq in the 14th century to issue token money and replace silver taka with copper, though a genuine monetary experiment, ended in disaster. 6. Use of paper money started in the West in the 17th century.
However, paper currency did not catch on in India because of the political turmoil following the collapse of Mughal Empire in the 17th century. Early currency in the form of “I owe you / promissory notes” issued by banks or royal courts made appearance in India only in late 18th century.