The Government of Hyderabad made several efforts to organise private bankers to set up a banking company that could issue paper money.

Hyderabad continued to mint its coins until 1948 when India occupied the state after the Nizam refused to cede it to the new Dominion.

[3][4] After the merger of Hyderabad State with India, the Hyderabadi currency was gradually demonetised in stages, starting from January 1953.

The next stage was in 1955 and finally, it was decided that Hyderabadi Rupee would no longer remain a valid currency after 30 June 1959[5] The banknotes of Hyderabad were issued from 1918 until 1953.

In 1932, a quantity of unissued, but water-stained Hyderabadi notes in 5-, 10-, and 100-rupee denominations were recovered from the SS Egypt, which sank off the island of Ushant near Brest, northern France in 1922.

Hali Osmania paper currency in Hyderabad State that was returned to the treasury from 1 July 1953 to 31 October 1953 is O. S. Rs 8.05 crores including one-rupee notes.

This was the first issue after Hyderabad was liberated from the Nizam's rule and forced to be incorporated into the Dominion of India as a result of Operation Polo.