Rupiya – An Indian Currency
Indian currency which is known as ‘Rupee’ has a long history that traces back to ancient times. Panini who was a revered Sanskrit philologist, was also a grammarian and a Hindu Scholar, mentioned the name ‘rupya’ referring to coins in prehistoric India. The term ‘Rupee’ was extracted from the Sanskrit word ‘rupya’, which significantly meant ‘wrought silver’ or something that is stamped with an image. Conventionally, the rupee was a silver coin. Ancient Indians along with the Chinese and Lydian who belonged to the Middle East were the earliest issuers of coins. The first Indian coins were manufactured by the Mahajan pandas, who were also known as Puranas, Karshapanas, or Panas.
Coins of different kingdoms
All these coins varied in shape, size, and weight from each other.
- ï Different kingdoms had different markings on their silver coins, e.g., Saurashtra had a humped bull, Magadha had several other symbols and Dakshin Panchala had a Swastika.
- ï Later came the Maurya and Indo-Greek Kushan kings with punched mark coins producing silver, gold, copper, and Greek printing portraits on their coins.
- ï After the Maurya and Indo-Greek Kushan kings, the Turkish Sultans from Delhi replaced these designs on the coins. Now, instead of any portraits and symbols, they printed Islamic calligraphy at this stage. The higher-valued coins made up of gold, silver, and copper were named as Tanka, and the lower-valued coins as Jittals.
Evolution of monetary system
The monetary system was strengthened and secured by the Mughal Empire from 1526 AD.
➢ The evolution of the rupee happened after Sher Shah Suri defeated Humayun and issued a silver coin known as ‘rupiya’ which weighed 178 grams. This silver rupiya was divided into 40 different copper pieces or paisa.
➢ In 1600 AD, when the British East India Company was in existence, the silver currency rupiya remained in favor.
➢ Farrukh Siyar, a Mughal emperor permitted the Britishers to manufacture their Mughal money at Bombay in 1717AD.
➢ After the Britishers were handed the Mughal money, they named the gold, silver, copper, and tin coins as Carolina, Angelina, cupperoon, and tinny.
➢ In the year 1870, the Bank of Hindustan was set up by the English agency ‘House of Alexander and Co.’ in Calcutta, General Bank in Bengal, and the Bengal Bank were the first bank to issue paper currency in India.
The paper currency was first issued during the period of the Britishers. First note issued by the Bank of Bengal was of Two Hundred and Fifty Sicca Rupees note on September 3rd, 1812. The Coinage Act of 1835, brought uniform coinage throughout the country. The Coinage Act gave the three presidencies – Bengal, Bombay, and Madras, the power to issue their own coinage. In 1858, the Mughal Empire came to an end, and one hundred princely states were under the control of the Britishers. Thus, the images on the coins were replaced by the pictures of the Monarch of Great Britain. During British Rule, King George VI again reformed the designs on the banknote and coins and after the 1857 revolt declared the rupee as the official currency of India. In the glory of Queen Victoria, the bank notes and coins were printed with Victoria’s portrait. In the year 1935, the Reserve Bank of India was established which started issuing Government of India notes. The first note that was printed by RBI was of Rs 5 which had King George VI’s portrait.
POST INDEPENDENCE
After the Independence, RBI in 1969 issued the Mahatma Gandhi Birth design on Rs 5 note and Rs 10 note. After many rivalries finally, in 1996 the Mahatma Gandhi series of paper notes was initiated. This is how Indian currency came into existence and enacted Rs 5, Rs 10, Rs 100, Rs 500, and Rs 1000 notes and with the new Government currently some of the notes have been demonetized to reduce corruption and black money.
