The year 1902 marked an important landmark for the inauguration of paper money when King Rama V promulgated the Siamese Currency Notes Act, Ratanakosin Era 121 on June 24, 1902. The Note Department, located on the ground floor of the Rassadakornpipat Tower of the Grand Palace, was the command of the Minister of Royal Treasury (presently the Ministry of Finance). The Bank of Thailand was thus established according to the Bank of Thailand Act B.E. 2485 as notified on April 16, B.E. 2485 with the official opening on 10 December that same year. The BOT was constituted for the purpose of taking over the management of the note issue from the Ministry of Finance and of carrying on such business as pertain to central banking in accordance with the provisions of the Act and the Royal Decreed issued. For this reason, the authority and duties associated with banknotes were wholly transferred from the Ministry of Finance to the Bank of Thailand.
The important responsibility of the Bank of Thailand (BOT) is to design, print, issue, and manage banknotes to ensure that banknotes in circulation are sufficient as means of payment for the economy. The Banknote Management Group was thus set up to be directly responsible for printing and issuing of Thai banknotes.