HISTORY OF INDIAN COINAGE

The history of Indian coinage dates back to Vedic times. Vedic literature made references to Satamanas (coins) niskas (weights) and hiranya pindas (ornaments). Kautilya’s Arthashastra also made a mention to Suvarnarupa (coins of gold; Rupya rupa (Silver coins), Tamrarupa (copper coins) and Rupyarupa Sisarupa (Lead coins). Rupya means wrought silver. It is the root form of rupee. This confirms the presence of an exchange material in the form of metallic value during vedic period.

Coined money was in circulation even in 326 BC at the time of Alexander’s invasion. Sher Shah Suri (1540 to 1545 AD) issued silver coins weighing 178 grains and termed it as Rupiya. This was a pre-cursor of the modern Rupee. It remained largely unchanged till the early 20th century. The first coinage under the crown was issued in 1862 and in 1877 Queen Victoria assumed the title the Empress of India.

After independence on 15th August, 1947 India retained the monetary system of the earlier British period. While Pakistan introduced a new series of coins in 1948 and notes in 1949, India brought out its distinctive coins on 15th August, 1950. One Rupee consisted of 16 Annas or 192 pies (One Anna = 4 Pice; 1 Pice = 3 Pies). Independent India adopted Ashoka pillar on all coins. The Lion Capital of the Ashoka Pillar replaced the King’s portrait.

In September 1955 the Indian Coinage Act was amended to adopt a metric system for coinage. The Act came into force with effect from 1st April, 1957. The rupee remained unchanged in value and nomenclature. However, it was divided into 100 paise. For public recognition, the new decimal paise was termed Naya Paise till 1st June 1964 when the term Naya was dropped. Stainless steel coinage of 10, 25 and 50 paise was introduced in 1988 and of 1 rupee in 1992. Rupee 1, 2 and 5 coinisation was introduced gradually during 1990s.

There are 4 Mints at Bombay, Calcutta, Hyderabad and Noida, which are capable of producing coins in Gold, Silver, Nickel, Cupro-Nickel, Aluminium-Bronze, Aluminium Magnesium alloy etc.