20 Taka

Bangladesh Bank introduced this series during a period of active denomination rationalization, with the 20 Taka filling a practical gap between the 10 and 50 Taka notes that had seen heavy wear in daily commerce. Cotton substrate was standard for the series, chosen for durability in Bangladesh's humid climate — a real factor in how quickly notes degraded in circulation.

The watermark remains the primary security measure on P#40, a relatively modest specification by early 2000s standards, when neighboring central banks were already introducing security threads and color-shifting inks on mid-denomination notes.