The year 1902 marked an important landmark in the inauguration of paper money in Thailand. By Royal Command, the Siamese Currency Notes Act, R.E. 121 was promulgated on June 24, 1902.
There were efforts to introduce paper money to replace silver coins during the King Rama IV's reign, and the success eventually came in the reign of King Rama V by officially inaugurating Thai Banknotes Department under the Ministry of Finance. The department had responsibility in issuing and exchanging banknote which officially served the public for the first time on September 23, 1902. This marked the inauguration of modern Thai banknotes.