"Pakistan Note Payment Refused"

After the partition of Indian sub-continent into Pakistan and India in 1947, British India banknotes were used in the newly created country of Pakistan.  For emergency use, in the absence of a Bank of Pakistan to dictate monetary policy, the Reserve Bank of India overprinted “Government of Pakistan” on banknotes for circulation in Pakistan. 

Shown below is a 10 Rupees banknote From British India before the partition and with the stamp of the new Government of Pakistan.

Some of these banknotes made its way back into India at the time of the partition.  Resourceful Indians tried to use the banknotes by erasing the overprint. When detected by government authorities, they counter marked the banknotes with “Pakistan Note, Payment Refused.”  This is one of the rare oddities from the partition of the Indian sub-continent to India and Pakistan.