Currency System from the prehistoric times to the
British Period
Ever since the dawn of civilization, man has been trading with each
other. In the pre historic times when there was no concept of money,
people used barter system. In this system goods were exchanged with each
other instead of paying money. Gradually, with development, metals were
used to cast coins. In India, during the rule of the slave dynasty
silver coins known as tanka and copper coins known as jintal were
introduced by Iltutmish. During a brief rule Sher Shah Suri introduced a
silver coin known as Rupiya was introduced. Mughal coinage highlighted
originality and innovative skills. Earliest issues of paper rupees were
by Bank of Hindustan (1770-1832), Bengal Bank (1784-91). During the
British rule, and even in the first decade of independence, rupee was
divided into 16 annas, which was divided into 4 paise.
Currency System After Independence
Pre Decimal issues (1950 - 57)
The first coins were introduced in 1950's. They were 1 pice,1/2, 1 and
2 annas,1/4,1/2 and 1 rupee denominations.
Decimal Issues (1957 - till date)
The first decimal issues of India consisted of 1,2,5,10,25 and 50 paise
along with 1 rupee. The 1 naya paisa was made of bronze while the 2, 5
and 10 naye paise were of cupro-nickel. The 25 and 50 naye paise and the
1 rupee were made of nickel. In 1964, the term naya was eliminated from
all coins. In 1964 and 1967, aluminum 1,2,3,5 and 10 paise were
introduced. In 1968, nickel brass 20 paise were introduced which were
replaced by aluminum coins in 1982. In 1982, cupro nickel 2 rupees coins
were introduced. In 1988, stainless steel 10, 25 and 50 paise were
introduced, followed by 1 rupee coins in 1992. In 1992 5 rupees coins
were also introduced.
Bank Notes Before Independence
The Reserve bank of India began note production in 1938, issuing 2,
5,10,1000 rupee notes, while the government of India continued to issue
1 rupee notes.
Bank notes After Independence
After independence the government introduced new designs in bank notes.
In 1970s 20 and 50 notes were introduced. In 1987, 500 rupee note was
reintroduced followed by 1000 rupees in 2000. The language panel on the
Indian rupee banknotes has 15 of the 22 national languages of India.
Demographics of Currently Circulating Notes
