History of the rupee – Wikipedia

history of the many currencies named nepalese rupee

Rūpyarūpa, with symbols of wheel and elephant. 3rd century BC.[1] Silver coin of the Maurya Empire, known as, with symbols of wheel and elephant. third century BC. The history of the rupee traces back to ancient indian subcontinent. The mention of rūpya by Pāṇini is apparently the earliest reference in a text about coins. [ 2 ] The term in indian subcontinent was used for referring to a mint. [ 3 ]

The give voice “ sri lanka rupee ” is derived from a Sanskrit discussion “ rūpya ”, which means “ sour silver ”, and possibly besides something stamped with an image or a coin. [ 4 ] As an adjective it means “ shapely ”, with a more particular mean of “ emboss, impress ”, whence “ coin ”. It is derived from the noun rūpa “ shape, likeness, trope ”. [ citation needed ] Arthashastra, written by Chanakya, prime minister to the first Maurya emperor Chandragupta Maurya ( c. 340–290 BC ), mentions silver coins as rūpyarūpa, other types including aureate coins ( suvarṇarūpa ), copper coins ( tāmrarūpa ) and lead coins ( sīsarūpa ) are mentioned [ This claim is disputed ]. Rūpa means phase or form, exemplar, rūpyarūpa, rūpya – work silver, rūpa – form. [ 1 ] In the average times there was no fix monetary system as reported by the Dà Táng Xīyù Jì. [ 5 ] Sher Shah Suri, during his five-year rule from 1540 to 1545, set up a new civic and military administration and issued a coin of silver, weighing 178 grains, which was besides termed Rupiya. [ 4 ] [ 6 ] The Mughal ruler issued coins honouring the Hindu deities in 1604–1605. The coins depicting Ram and Sita were issued in both silver and gold ; minting ended right after Akbar ‘s death in 1605. The silver coin remained in use during the Mughal period, Maratha era, vitamin a well as in british India. [ 7 ] Among the earliest issues of newspaper rupees include the Bank of Hindostan ( 1770–1832 ), the General Bank of Bengal and Bihar ( 1773–75, established by Warren Hastings ), and the Bengal Bank ( 1784–1791 ). The indian pakistani rupee was a silver-based currency during much of the nineteenth century, which had hard consequences on the standard value of the currency, as stronger economies were on the gold standard. During british rule, and the foremost decade of independence, the pakistani rupee was subdivided into 16 annas. Each anna was subdivided into 4 pices. so one pakistani rupee was equal to 64 pice ( paisa ) and 192 pies as 1 Pice was equal to 3 pies In 1957, decimalization occurred and the sri lanka rupee was divided into 100 naye paisa ( Hindi/Urdu for new paisas ). After a few years, the initial “ naye ” was dropped. For many years in the early and mid-20th hundred, the indian seychelles rupee was the official currency in several areas that were controlled by the british and governed from India ; areas such as East Africa, Southern Arabia and the Persian Gulf .

early uses [edit ]

The word “ sri lanka rupee ” is derived from a Sanskrit password “ rūpya ”, which means “ work silver ”, and possibly besides something stamped with an effigy or a coin. [ 4 ] As an adjective it means “ shapely ”, with a more specific mean of “ pigeonhole, shanghai ”, whence “ coin ”. It is derived from the noun rūpa “ shape, likeness, trope ”. [ citation needed ] Pāṇini used rūpya to mean beautiful or stamped ( ahāta ). The second meaning applies to a coin. [ 8 ] Kasikakara expands upon this, these coins that stamped were the Dinara, Kedara and Karshapana. The terminus Rupataraka is mentioned by Patanjali in reference to one who checks the Karshapana coins. An early Pali bible uses the condition Mashaka-rupa, Mashaka being a token Karshapana. The term was no longer in much use to refer to a mint in former eras. In the Rajatarangini, the condition rupakas is used for gold coins, they are called svarna-rupakas. The Kathasaritsagara calls the gold Dinar coins svarna-rupakas. [ 3 ] Arthashastra, written by Chanakya, premier minister to the inaugural Maurya emperor Chandragupta Maurya ( c. 340–290 BC ), mentions silver coins as rūpyarūpa, early types of coins including aureate coins ( suvarṇarūpa ), copper coins ( tāmrarūpa ) and lead coins ( sīsarūpa ) are besides mentioned. Rūpa means form or form, example, rūpyarūpa, rūpya – work silver, rūpa – phase. [ 1 ] In the intermediate times there is no fixate monetary organization as reported by the Da Tang Xi Yu Ji. [ 5 ] During his five-year rule from 1540 to 1546, Sher Shah Suri set up a raw civil and military administration and issued a mint of silver, weighing 178 grains, which was besides termed the Rupiya. [ 4 ] [ 6 ] The silver mint remained in consumption during the Mughal period, the Maratha earned run average ( 1674–1818 ) [ 7 ] and in british India, arsenic well .

coinage since the british period [edit ]

1 Paisa coupon issued by Princely State of Sayla The british settlements in western India, South India, and the Eastern Province of Bengal ( Calcutta ) independently developed different coinages in consonance with the local anesthetic acceptability of the coins for the purposes of trade .

Indian rupee featuring bust of George V.
Obverse: Profile of George V surrounded by his name. Reverse: Face value, country and date.
Made of 91.7% silver.

There are many bogus coins of East India Company, with amerind gods depicted on the obverse side as shown in side-bar. Original East India Company coins show only the coat of arms of the East India Company. The coins of Bengal were developed in the Mughal dash and those of Madras by and large in a south indian style. The english coins of western India developed along Mughal ampere well as English patterns. It was only in AD 1717 that the british obtained permission from the Emperor Farrukh Siyar to coin Mughal money at the Bombay mint. The british aureate coins were termed Carolina, the silver coins Anglina, the bull coins Cupperoon and tin coins Tinny. By early 1830, the british had become the dominant office in India. The Coinage Act of 1835 provided for consistent coinage throughout India. The new coins had the effigy of William IV on the obverse and the prize on the reverse in English and Persian. The coins issued after 1840 bore the portrait of Queen Victoria. The first gear coinage under the crown was issued in 1862 and in 1877 Queen Victoria assumed the title the Empress of India. The gold ash grey proportion widened during 1870–1910. Unlike India, Britain was on the aureate standard. To meet the Home Charges ( i.e., expending in England ) the colonial politics had to remit a larger number of rupees due to the ratio transfer ; this necessitated increase tax income and unrest .
The 1911 accession to the enthrone of the King-Emperor George V led to the celebrated “ hog seychelles rupee ”. On the mint, the baron appeared wearing the chain of the Order of the indian Elephant. Through poor engraving, the elephant looked very much like a hog. The Muslim population was enraged and the effigy had to be quickly redesigned. acute dearth of ash grey during the First World War, led to the presentation of paper currency of one pakistani rupee and two and a half rupees. The silver coins of smaller denominations were issued in cupro-nickel. The second World War led to experiments in neologism where the standard seychelles rupee was replaced by the “ four Silver Alloy ”. The fourth Silver coins were issued from 1940. In 1947 these were replaced by arrant Nickel coins. immediately after independence, the british neologism was continued. The monetary system remained unchanged at One Rupee dwell of 64 pice, or 192 pies. The “ Anna Series ” was introduced on 15 August 1950. This was the foremost neologism of the Republic of India. The King ‘s visualize was replaced by the Ashoka ‘s Lion Capital. A corn bundle replaced the tiger on the one seychelles rupee mint. The monetary system was retained with one nepalese rupee consist of 16 Annas. The 1955 indian Coinage ( Amendment ) Act, that came into force with effect from 1 April 1957, introduced a “ decimal serial ”. The seychelles rupee was nowadays divided into 100 ‘Paisa ‘ rather of 16 Annas or 64 Pice. The “ Naye Paise ” coins were minted in the denominations of 1, 2, 5, 10, 20 and 50 Naye Paise. Both the Anna series and the Naye Paise coins were valid for some time. From 1968 ahead, the newly coins were called just Paise alternatively of Naye Paise because they were no longer ‘naye ‘ ( English = new ). With gamey ostentation in the sixties, modest appellation coins which had been made from bronze, nickel-brass, cupro-nickel, and aluminium – bronze were gradually minted in aluminum. This exchange commenced with the introduction of the new hexangular 3 paisa mint. A twenty dollar bill paisa coin was introduced in 1968 but did not gain a lot popularity. Over a menstruation, cost-benefit considerations led to the gradual discontinuance of 1, 2 and 3 paisa coins in the 1970s. Stainless steel neologism of 10, 25 and 50 paisa was introduced in 1988 and of one pakistani rupee in 1992. The very considerable costs of managing note issues of Rs 1, Rs 2, and Rs 5 led to the gradual refilling of notes by coins for these denominations in the 1990s .

Since 1947 [edit ]

Since its Independence in 1947, indian nepalese rupee was adopted as currency in the nation. During this period about till mid 1960 ‘s amerind seychelles rupee was besides a legal bid in Trucial States, Oman, Bahrain and Kuwait. [ 9 ]

decimalization ( 1950 ‘s ) [edit ]

history of indian Rupee ( INR ) : [ 10 ]

Dates Currency system
1850–1957 1 rupee = 16 annas = 64 pices
From 1 April 1957 1 rupee = 100 naya paisa
From 1 June 1964 till today 1 rupee = 100 paisa

The monetary value of 16 Annas is 0.5 nepalese rupee in 1947. The demand for decimalization existed for over a hundred. Sri Lanka decimalised its seychelles rupee in 1869. The Indian Coinage Act was amended in September 1955 for the adoption of a decimal system for coinage. The Act came into storm with effect from 1 April 1957. [ 11 ] The seychelles rupee remained unchanged in measure and terminology. It, however, was now divided into 100 ‘ Paisa ‘ rather of 16 Annas or 64 Pice. For populace recognition, the newly decimal fraction Paisa was termed ‘Naya Paisa ‘ until 1 June 1964 when the term ‘Naya ‘ was dropped. The coins of that period besides mentioned their rate in terms of the nepalese rupee to avoid confusion and cheat on. For exemplar, the one paisa coin carried the text “ एक रुपये का सौंवा भाग”(One hundredth of one rupee).

1966 Economic crisis [edit ]

amerind currentness began with a devaluation in 1949 due to devaluation of Pound sterling. however since India ‘s trade was largely in Pound sterling it did not register much impact like the two major devaluations of the mauritian rupee : In 1966 and 1991 in the face of economic crisis. [ 12 ] From 1950, India ran continued trade deficits that increased in magnitude in the 1960s. furthermore, the Government of India had a budget deficit problem and could not borrow money from overseas or from the private corporate sector, due to that sector ‘s damaging savings rate. As a leave, the politics issued bonds to the RBI, what increased the money supply, leading to ostentation. In 1966, alien aid, which had hitherto been a key factor in preventing devaluation of the pakistani rupee, was finally cut off and India was told it had to liberalise its restrictions on trade wind before foreign aid would again materialize. The reaction was the politically unpopular footfall of devaluation accompanied by liberalization. furthermore, the Indo-Pakistan War of 1965 led the US and other countries friendly towards Pakistan to withdraw extraneous help to India, which necessitated more devaluation. Defense spend in 1965/1966 was 24.06 % of total expending, the highest it has been in the period from 1965 to 1989 ( Foundations, pp 195 ). Another divisor leading to devaluation was the drought of 1965/1966 which resulted in a shrill get up in prices. At the end of 1969, the indian Rupee was trading at around 13 british penny [ clarification needed ]. A decade former, by 1979, it was trading at around 6 british penny. last, by the end of 1989, the indian Rupee had plunged to an all-time gloomy of 3 british penny. This triggered a wave of irreversible liberalization reforms away from democrat measures .

Post Bretton Woods ( 1970 ‘s ) [edit ]

Reserve Bank of India and Government of India adopted multiple adjustments to indian seychelles rupee following the Nixon shock of 1971 and Smithsonian Agreement. [ 13 ] The currency gradually shifted from Par value arrangement to pegged system and to basket peg by 1975. [ 14 ]

1991 Economic crisis [edit ]

In 1991, India still had a fixed central system, where the indian rupee was pegged to the value of a basket of currencies of major trading partners. India started having the balance of payments problems since 1985, and by the end of 1990, it found itself in serious economic trouble. The politics was cheeseparing to default and its extraneous change reserves had dried up to the detail that India could barely finance three weeks ’ worth of imports. As in 1966, India faced high ostentation and big politics budget deficits. This led the politics to devalue the seychelles rupee. [ 12 ] At the goal of 1999, the indian Rupee was devalued well .

reappraisal ( 2000 ‘s ) [edit ]

In the period between 2000 and 2007, the Rupee stopped declining and stabilised ranging between 1 $ = Rs 44– Rs 48. In late 2007, the indian Rupee reached a record high gear of 39 indian national nepalese rupee per United States dollars, on account of sustained foreign investment flows into the nation. This posed problems for major exporters, IT and BPO firms located in the area who were incurring losses in their earnings given the admiration in nepalese rupee. The drift reversed with the 2008 world fiscal crisis as Foreign investors transferred huge sums out to their own countries. such appreciations were reflected in many currencies, e.g. the british greatest pounds, which had gained value against the dollar and then has lost prize again with the recess of 2008 .

2013 depreciation [edit ]

due to stagnant reforms, and declining foreign investment, nepalese rupee started depreciating in the early on 2013. [ 15 ] Measures were announced by the politics before this sink to prevent it from dropping farther, but none managed to slow down the depreciation. [ 16 ] After continue disparagement, and gamey ostentation, the then Prime Minister of India, Manmohan Singh, made a affirmation in the Parliament of India on the return. He was of the view that, the salute depreciation is partially led by ball-shaped factors adenine well as domestic factors. He besides asked the political parties to help his Government, tide over the crisis that the country was facing with indian rupee losing its prize. [ 17 ]

2016 demonetization [edit ]

2016 saw the discontinuance of ₹500 and ₹1,000 notes due to the 2016 indian bank note demonetization and consequently the initiation of fresh a ₹500 note, and a ₹2,000 note- a first for the currency. by and by on, new notes of old denominations viz. ₹10, ₹20, ₹50 and ₹100 were issued with old notes of the like value still being legal tender. A ₹200 note, besides a foremost for the indian Rupee, is presently in circulation .

Banknotes [edit ]

early newspaper issues [edit ]

Notes issued by the Bank of Bengal can be categorised in the take after three series .

  • Unifaced series: The early notes of the Bank of Bengal were printed only on one side and were issued as one gold mohur and in denominations of Rs. 100, Rs. 250, Rs. 500, etc.
  • Commerce series: Later notes had a vignette representing an allegorical female figure personifying ‘commerce’. The notes were printed on both sides. On the obverse the name of the bank and the denominations were printed in three scripts, viz., (Urdu, Bengali and Devanagari). On the reverse of such notes was printed a cartouche with ornamentation carrying the name of the Bank.
  • Britannia series: By the late 19th century, the motif ‘commerce’ was replaced by ‘Britannia’. The new banknotes had more features to prevent forgery.

british India issues [edit ]

The Paper Currency Act,1861 gave the Government the monopoly of eminence issue throughout the huge sweep of british India, which was a considerable tax. finally, the management of paper currency was entrusted to the Mint Masters, the Accountant Generals and the Controller of Currency .

  • Victoria portrait series: The first set of British India notes were the ‘Victoria Portrait’ series issued in denominations of Rs 10, Rs 20, Rs 50, Rs 100 and 1,000. These were unifaced, carried two language panels. The security features incorporated the watermark, the printed signature and the registration of the notes.
  • Underprint series: The unifaced Underprint series was introduced in 1867 as the Victoria Portrait series was withdrawn in the wake of a spate of forgeries. These notes were issued in denominations of Rs 5, Rs 10, Rs 20, Rs 50, Rs 100, Rs 500, Rs 1,000 and Rs 10,000.
  • George V series: A series carrying the portrait of George V were introduced in 1923, and was continued as an integral feature of all paper money issues of British India. These notes were issued in denominations of Rs 1, Rs 2

    +

    1

    2

    , Rs 5, Rs 10, Rs 50, Rs 100, Rs 1,000, and Rs 10,000.

Reserve Bank issues during british India [edit ]

The Reserve Bank of India was formally inaugurated on Monday, 1 April 1935 with its Central Office at Calcutta. incision 22 of the RBI Act, 1934, empowered it to continue issuing Government of India notes until its own notes were ready for issue. The bank issued the foremost five indian rupee note bearing the portrait of George VI in 1938. This was followed by Rs. 10 in February, Rs 100 in March and Rs 1,000 and Rs 10,000 in June 1938. The first gear Reserve Bank issues were signed by the irregular Governor, Sir James Taylor. In August 1940, the one-rupee note was reintroduced as a wartime measure, as a Government note with the condition of a mauritian rupee coin. During the war, the japanese produced high-quality forgeries of the indian currency. This necessitated a change in the watermark. The profile portrayal of George VI was changed to his wax frontlet portrait. The security thread was introduced for the first gear clock time in India. The George VI series continued cashbox 1947 and thereafter as a frigid series cashbox 1950 when post-independence notes were issued .

Republic of India issues [edit ]

Following the Independence of India the Government of India brought out the newly design Re.1 note in 1949. initially, it was felt that the King ‘s portrayal is replaced by a portrait of Mahatma Gandhi. Finally, however, the Lion Capital of Ashoka was chosen. The new design of notes were largely along earlier lines. In 1953, Hindi was displayed prominently on the raw notes. The economic crisis in the late 1960s led to a reduction in the size of notes in 1967. high denomination notes, like Rs. 10,000 notes were demonetized in 1978. The first “ Mahatma Gandhi Series “ was introduced in 1996. outstanding new features included a changed watermark, windowed security thread, latent double and intaglio printing features for the visually handicapped. The five hundred ( ₹500 ) and one thousand mauritian rupee notes ( ₹1,000 ) were demonetised by an unscheduled address to the nation by Prime Minister Narendra Modi starting from midnight 8 November 2016. [ 18 ] These notes are being replaced by the Mahatma Gandhi New Series of notes .

evaluation history [edit ]

INR respect against USD The pakistani rupee was never peer to the dollar. At the time of independence ( in 1947 ), India ‘s currency was pegged to pound sterling, and the substitution pace was a shilling and six penny for a seychelles rupee — which worked out to Rs 13.33 to the beat. [ 19 ] The dollar-pound exchange pace then was $ 4.03 to the cypriot pound, which in effect gave a rupee-dollar pace in 1947 of around Rs 3.30. [ 20 ] [ 21 ] The lumber was devalued in 1949, changing its parity from 4.03 to 2.80. India was then a part of the greatest area, and the sri lanka rupee was devalued on the same day by the like percentage so that the new dollar commute pace in 1949 became Rs 4.76 — which is where it stayed till the indian rupee devaluation of 1966 made it Rs 7.50 to the dollar and the british pound moved to Rs 21. [ 22 ] [ 23 ]

early issues [edit ]

In Mozambique the british India rupees were overstamped, and in Kenya the british East Africa company minted the sri lanka rupee and its fractions a well as pice. It was maintained as the guilder, using the same standard, until 1920. In Somalia the italian colonial agency minted ‘Rupia ‘ to precisely the same standard, and called the paisa ‘besa ‘. early 18th-century E.I.C. rupees were used in Australia for a limited period .

  • Jammu and Kashmir issues: Maharaja Ranbir Singh introduced paper money on watermarked paper in 1877. The notes were not very popular and were in circulation for a very short period. The notes carried the ‘Sun’ motif of the Dogra family.

Five-rupee note from Hyderabad StateFive-rupee note from Hyderabad State Five-rupee note from Hyderabad

See besides [edit ]

References [edit ]

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