September 23, 2022

The rupee which we preserve in our pocket has a mysterious previous. Behind Mahatma Gandhi’s smiling face lies an extended historical past of wrestle, exploration, and wealth that may be traced again to the traditional India of the sixth century BC.

Let’s demystify this historical past of the Indian rupee and find out about how Indian forex has developed over the ages into the rupee of as we speak.

The phrase ‘Rupee’ has been derived from the Sanskrit phrase Rupyakam, that means a silver coin. It owes its origin to Rupiya, issued by Sher Shah Suri in 1540-45. Right now, the Reserve Financial institution of India points forex underneath the RBI Act 1934.

Historical past of the Indian rupee

The historical past of the Indian rupee traces again to historic India in circa sixth century BCE. Historical India was one of many earliest issuers of cash on the earth, together with the Chinese language wen and Lydian staters. The primary Indian cash have been minted by the Mahajanpadas (the Republic Kingdoms of historic India) often called Puranas, Karshapanas or Panas. These Mahajanapadas included Gandhara, Kuntala, Kuru, Panchala, Shakya, Surasena, and Saurashtra.

history of the coins in india
Historical past Of The Cash in India | Wikipedia

These cash have been fabricated from silver and an ordinary weight however with irregular shapes and completely different markings like Saurashtra had a humped bull, Dakshin Panchala had a Swastika and Magadha had a number of symbols.

Then first Maurya emperor Chandragupta Maurya got here up with the Punch Marked Cash minting of silver, gold, copper, or lead. Indo-Greek Kushan kings launched the Greek customized of engraving portraits on the cash. Chanakya, prime minister to the primary Mauryan emperor talked about the minting of cash reminiscent of Rupyarupa (silver),  Suvarnarupa (gold), Tamararupa (copper) and Sisarupa (lead) in his Arthashastra treatise.

The Turkish Sultans of Delhi had changed the royal designs of Indian kings with Islamic calligraphy by the twelfth century AD. The forex was made up of gold, silver and copper often called Tanka and the decrease valued cash often called Jittals. The Delhi Sultanate additionally tried to standardise the financial system by issuing cash of various values.

The Mughal Empire from 1526 AD consolidated the financial system for the whole empire. On this period, the evolution of the rupee occurred when Sher Shah Suri defeated Humayun and issued a silver coin of 178 gms often called Rupiya and these cash have been remained in use through the Mughal interval, Maratha period and British India.

History Of Indian Rupee
Historical past Of Indian Rupee |

When the British East India Firm set itself up in India within the 1600s, Sher Shah’s silver Rupiya had remained widespread. Regardless of many makes an attempt to introduce the sterling pound in India, the Rupaiya grew in reputation and was even exported as a forex to different British colonies.

The British Empire

Within the 18th Century, the Financial institution of Hindostan Common Financial institution in Bengal and the Bengal Financial institution grew to become the primary banks in India to problem paper forex. Throughout this time paper cash was first issued in British India.

In the 18th Century, the Bank of Hindostan General Bank in Bengal and the Bengal Bank became the first banks in India to issue paper currency.
Financial institution of Hindostan – Sixteen Sicca Rupees | indianbanknote

After the 1857 revolt, the British made the rupee the official forex of colonial India, with the pinnacle of King George VI changing native designs on banknotes and cash.

History Of The Indian Rupee
Historical past Of The Indian Rupee | indianbanknote

Within the nineteenth century, the British launched paper cash into the subcontinent. The Paper Forex Act of 1861 gave the Authorities the monopoly of notes issued all through the huge expanse of British India, which was a substantial job. Finally, the administration of paper forex was entrusted to the Mint Masters, the Accountant Generals and the Controller of Forex.

Portrait Notes of King George V - One Rupee
Portrait Notes of King George V – One Rupee
| indianbanknote

A collection carrying the portrait of George V was launched in 1923 and was continued as an integral characteristic of all paper cash problems with British India. These notes have been issued in denominations of Rs 1, 2½, 5, 10, 50, 100, 1,000, 10,000.
Reserve Financial institution of India – Rupees 5 | Historical past Of The Indian Rupee | indianbanknote

The Reserve Financial institution of India was formally inaugurated on Monday, April 1, 1935, with its Central Workplace in Calcutta. Part 22 of the RBI Act, 1934, empowered it to proceed issuing Authorities of India notes till its personal notes have been prepared for problem. The financial institution issued the primary 5 rupee observe bearing the portrait of George VI in 1938. This was adopted by Rs. 10 in February, Rs 100 in March and Rs 1,000 and Rs 10,000 in June 1938. The primary Reserve Financial institution points have been signed by the second Governor, Sir James Taylor.

The primary paper forex issued by the Reserve Financial institution of India was a 5 rupee observe bearing King George VI’s portrait, in January 1938.

After gaining Independence in 1947, India’s fashionable Rupee reverted again to the design of the signature Rupee coin. The image chosen for the paper forex was the Lion Capital at Sarnath which changed the George VI collection of banknotes. So, the primary banknote printed by Unbiased India was a 1 rupee observe.

The “Anna Collection” was launched on 15 August 1950. This was the primary coinage of the Republic of India.

The King’s picture was changed by Ashoka’s Lion Capital. A corn sheaf changed the tiger on the one rupee coin. The financial system was retained with one rupee consisting of 16 Annas. The 1955 Indian Coinage (Modification) Act, which got here into drive with impact from 1 April 1957, launched a “Decimal collection”. The rupee was now divided into 100 ‘Paisa’ as an alternative of 16 Annas or 64 Pice.

With a purpose to support the blind within the nation, every coin had distinctly completely different shapes – the spherical 1 naya paisa, scalloped edge 2 naya paisa, the sq. 5 naya paisa, and the scalloped edge 10 naya paisa.

History Of The Indian Rupee
Historical past Of The Indian Rupee | unsplash

In 1959 a particular problem of rupees ten and Rupees One Hundred have been issued for the Indian Haj Pilgrims in order that they might change it with native forex in Saudi Arabia.

History Of The Indian Rupee
Historical past Of Indian Rupee | indianbanknote.blogspot

In 1969 Reserve Financial institution of India issued the Mahatma Gandhi Delivery Centenary Commemorative design collection on Rs 5 and Rs 10 notes.

In 1980 new notes have been issued with symbols of science & tech (Aryabhatta on Rs 2 observe), progress (oil rig on Rs 1 and farm mechanisation on Rs 5) and Indian artwork types on Rs 20 and Rs 10 notes (Konark wheel, peacock).

History Of Indian Rupee | indianbanknote.blogspot
Historical past Of Indian Rupee | indianbanknote.blogspot

In 1987 Rs 500 observe was launched because of the rising economic system and fall in buying energy.

History Of Indian Rupee | indianbanknote.blogspot
Historical past Of Indian Rupee | indianbanknote.blogspot

In 1996 the Mahatma Gandhi collection of notes was issued, beginning with Rs 10 and Rs 500 notes. This collection has changed all notes of the Lion capital collection. A modified watermark, windowed safety thread, latent picture and intaglio options for the visually handicapped have been the brand new options.

On July 15, 2010, India launched a brand new forex image, the Indian rupee signal, ₹.

history of indian currency
Historical past Of Indian Rupee | unsplash

In 2011, 25 paise cash and all paise cash under it have been demonetised. New collection of fifty paise cash and Rs 1, Rs 2, Rs 5 and Rs 10 notes with the brand new rupee image launched.

November 8, 2016

The Republic of India witnessed the second main financial reform in November 2016 when it withdrew the authorized tender standing of Rs 500 and Rs 1,000 denominations of banknotes of the Mahatma Gandhi Collection issued by the Reserve Financial institution of India until November 8, 2016.

500 and 2000 notes
Historical past Of Indian Rupee | Pinterest

The brand new banknotes have been launched within the Mahatma Gandhi (New) Collection, highlighting the cultural heritage and scientific achievements of the nation. Distinct colors have been used for the completely different denominations and sizes have been lowered. Two new denominations viz. Rs 2000 on November 08, 2016, and Rs 200 on August 23, 2017, have been launched within the Mahatma Gandhi (New) Collection.

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