Everyday, across the globe, banknotes are considered as the most reliable and legal form of billions of business transactions.

A banknote is currently is one of the several means of payment, and remains as the most tangible product of the bank. There has been an evolution in the purpose of using banknotes in the world. Initially, when banknotes were not used, people exchanged goods, which was known as the Barter System or for exchange of precious metals. As time progressed, the governments around the world began to issue paper notes of different values and these slowly replaced the goods for goods method.

Initially, the purpose of introducing paper currencies was to reduce the load of carrying piles of gold and silver and other precious items. While higher denominations of values are usually printed in papers the lower denominations are cast in coins. Banknotes have a shelf life and usually banks across the world shred the old banknotes and circulate the new ones depending on the respective time frame.

The banknotes that are used in one region may not be used by people in another region for any value for various reasons. For example, the only banknotes that enjoy legal status in the UK are the banknotes issued by the Bank of England. And Scottish banknotes issued by the Royal Bank of Scotland, the Bank of Scotland and the Clydesdale Bank do not enjoy official status in everywhere in Britain. This makes it difficult for people using them to trade or buy goods in Britain.

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