The Chartered Mercantile Bank
of India, London & China
Ceylon Branch : Colombo - Kandy - Galle

The Mercantile Bank of Bombay founded in 1853. It began operations at a branch in Colombo in 1854, and soon expanded by opening up-country agencies. It was named The Mercantile Bank of India, London & China in 1857 and has issued notes in Colombo before it received its Royal Charter on 1857 September 15. It moved it's Head Quarters to London in 1868. It issued notes as The Charted Mercantile Bank of India, London & China in its Colombo and Kandy Branches in 1858 and by 1880 were also issuing notes from its Galle Branch opened in 1863.

Before charter currency notes were signed by the the Directors. With Royal Charter the currency was signed by the Court of Directors. The notes issued by branches outside Colombo had additional phrase or at Colombo.

Only the value of the note appears in Sinhala and Thamil, the name of Bank is not printed in the local languages, on any of the Charted Mercantile Bank of India, London & China notes.

Until 1870 the bank issued notes denominated in sterling; pursuant to monetary reform in 1869 it then commenced a note issue in rupees. In March 1884 the Mercantile Bank's currency in circulation was Rs 921,000. In 1888 the bank's charter to issue currency was not renewed, and it reconstructed as Mercantile Bank of India on 1893 January 1st.

The Mercantile Bank of India, London & China (MBILC)
Printed by Batho & Co London, with Britannia Design
1857 :         Colombo 5s, £1, £5 notes
1857 :         Kandy 5s proof (in English Only)
The Chartered Mercantile Bank of India, London & China - Ceylon Branch
Sterling Era : Pounds
1858 :         Kandy - 5s proof (in English Only)
1862 :         Kandy - 10s note
Printed by Perkins Bacon & Petch, London, with Royal Crest Design
1864-1869 Colombo - 10s, £1, £5, £10, £50 notes
1864-1869 Kandy - 10s, £1, £5 notes
Decimal Era : Rupees
1870-1884 Colombo - Rs 5, Rs 10, Rs 50, Rs 100, Rs 500, Rs 1000 notes
1870-1884 Kandy - Rs 5, Rs 10, Rs 50 notes
1880-1884 Galle - Rs 5, Rs 10, Rs 100 notes

The name of the Bank appears only in English. Note that the value in vernacular Sinhala and Thamil is also given in Rupees, as the Indian Rupee was the familiar currency in circulation. One Pound Sterling equaled to Ten Rupees.
Please contact kavan @ gmail.com if I have made errors in encoding the Thamil in Unicode.

Watermark : CHARTERED MERCANTILE in downward arc above OF INDIA LONDON & CHINA in upward arc below lighter than paper and BANK in center
is seen only on 1870 and later Rs 50 and higher Denominations of Kandy and Galle.
None seen on any of the Denominations of Colombo Specimens at HSBC Archive
I thank Claire Twinn, Global Functions Archives Manager, HSBC Holdings PLC, London for sending me details of the watermarks seen on these BankNotes.

Size : As the Notes were probably cut by hand using a guillotine resulting in slight random difference in margins. The outer limits of the printed design is a better measure of size, as that is fixed.
This was measured on a circulated Rs 5 note at the Colombo National Museum as 6¾x4¼ inches or about 171x108 mm. With margins which are wider for width than height, the total size of note of about 7½x4½ inches or about 190x115 mm. SACPM(1981) does not give sizes.

According to Spink, issued notes for the Chartered Mercantile Bank are exceptionally rare. As the Mercantile continued in existence after the institution of the Ceylon Currency Board in 1885 nearly all of its outstanding circulation was paid either by itself or by the Board.

All notes are exceptionally rare, whether proof, specimen, or issued. The Colombo 5 shilling with the bank's original name prior to receiving it's charter is of exceptional rarity and importance.

The Hongkong and Shanghai Banking Corporation (HSBC) first established a branch in Colombo, Ceylon in 1892 but did not issue notes. The Mercantile Bank became part of the Hongkong Bank Group in 1959.

According to Joe Cribb the HSBC "Banks Money Collection has a rich array of notes issued for Ceylon by the Chartered Mercantile Bank of India, London and China." from the merger. I thank him for introducing me to the HSBC Archive.

In 1961 Government of Ceylon forbade foreign banks to accept deposits from Ceylonese nationals. HSBC sold Mercantile Bank of India's branches in Kandy, Galle and Jaffna to Commercial Bank of Ceylon (CBC) as part of a deal that would remove the government's limit on deposit taking in Mercantile's remaining branches in Colombo and Pettah, which were subsequently acquired by Hatton National Bank (HNB) in 1974.

Images of back of note not printed in Auction listings were printed at about 24 dpi resolution in the book History of Coins and Currency in Sri Lanka G. P. S. H. de Silva 2001 Central Bank of Sri Lanka. The book references the set of monochrome copies displayed at CBSL Currency Museum which may have been obtained many years ago from HSBC Archive.
The prints on display at CBSL Museum were photographed through the reflective glass to get higher resolution images, which needed to be photoshoped to remove keystone distortion and other issues. All of these temporary images have now been replaced with scans of the original Specimens in the HSBC Archives.

I thank Claire Twinn, Global Functions Archives Manager, HSBC Holdings PLC, London for sending me 400 dpi high resolution scans from the HSBC Collection. Two in 2017 November, 14 in in 2020 February, and the last 6 Ceylon banknotes types in 2020 March. They are Reproduced with the permission of HSBC Holdings plc (HSBC Archives) in this website at 200 dpi.

Please DONOT use any of these images for whatever purpose without seeking permission from HSBC Archive, HSBC Group Management Services Limited, Level 41, 8 Canada Square, Canary Wharf, London, E14 5HQ, United Kingdom.

Text and few Images from Auction listings, particularly the 2011 April Spink Auction of 19th Century Ceylon Notes. On the day of this Spink Auction, the anonymous owner of collection cancelled it. It listed Uniface Specimen Proofs on card of Chartered Mercantile Bank of India, London and China, Ceylon Branch, of Colombo, Kandy and Galle in Shillings, Pounds and from 1870 in Rupees.

Text also from
Money in the Bank, by Joe Cribb, An Illustrated Introduction to the Money Collection of The Hongkong and Shanghai Banking Corporation, Spink & Son Ltd., London, 1987. p 185