The “Z” in the number plates stands for Zahra Begum, mother of the last ruler of the erstwhile

Hyderabad State, Mir Osman Ali Khan, Nizam VII. In June of 1932 the Nizam’s Road Transport
was established as a part of Nizam State Rail with 27 buses and 166 employees. Later on the
Nizam’s State Rail is changed into Nizam’s State Rail and Road Transport Department
(N.S.R.R.T.D.).

Image Source: Our Hyderabad City Blog

Right from the very first vehicle the N.S.R.R.T.D acquired, the vehicle registration numbers
contained the letter “Z” in honor of Zahra Begum. And on 17th September 1948 when the Nizam
handed over his supremacy to the Indian Government, one of the agreements he reached with
Indian Government was that every bus registration number of the R.T.C should continue to
include the letter “Z”.