We know that the Indian currency is “Rupee” and the origin of the word”Rupee” is come from Sanskrit word “Rupya” which means shaped, coin, and also from the Sanskrit word “Rupya” which means silver.
There was a long history of struggle, exploration which can go back to the ancient India of the 6th Century BC. In the 19th century, the first time the Britisher introduced paper money into the subcontinent. The Paper Currency Act of 1861 gave the right to the Government to issued notes throughout the vast expanse of British India. Now, the Reserve Bank of India issues currency under the RBI Act 1934.
History and Evolution of Indian currency:-
(1) 6th Century BC:-
The first Indian coins were knocked by the Mahajanpadas (the Republic Kingdoms of ancient India) known as Puranas, Karshapanas or Panas). These coins have an irregular shape.
(2) 4th to 2nd century BC:-
This century belongs to the Maurya Dynasty. These coins were mostly circular, with few them of them being rectangular shaped. The coins generally weightage around 3 grams.
(3) 1st Century AD:-
By this time, the coins were popular choices is gold, silver, copper, and lead. Kushan brought the greek tradition on their coins. Now, modern-day coins continue to follow the Kushan blueprint.
(4) 12th century AD:-
In this era, the value of coins was called ” Tanka” and was made of gold, silver, and copper while coins of less value were called “Jitals”.
History of Indian rupee from Sher Shah Suri era:-
•1540-45 – Sher Shah Suri issued a Silver coin which was in use during the Mughal period, Maratha era and British India.
•1770-1832 -The earliest paper rupees were issued by Bank of Hindostan (1770– 1832), General Bank of Bengal and Bihar (1773–75), and Bengal Bank (1784–91).
•1 Apr 1935 – Reserve Bank of India was set up.
•Jan 1938 – (RBI)Reserve Bank of India issued first note of Rs 5.
•Feb-Jun(1938) – RBI issues Rs 10, Rs 100, Rs 1,000 and Rs 10,000 notes
•Mar (1943) – Rs 2 note was introduced.
•1953- the Hindi language features prominently on the new notes, and plural of repay was decided to be Rupee.
•1954- High value notes of Rs 1,000, Rs 5,000, and Rs 10,000 was introduced.
•1957 – Rupee is decimalized and divided into 100 paise.
•1957-6 – Aluminium coins value is introduced like one, two-, three-, five- and ten-paise.
•1967 -Note sizes reduce due to the bank period of the early Sixties.
•Oct 1987 -Rs 500 note was introduced due to the growing economy and fall in purchasing power.
•1988 – Stainless coins of 10, 25, and 50 paise was introduced.
•1992 -Rs 1 and Rs 5 coins in stainless steel was introduced.
•1996- The Mahatma Gandhi series of notes issued, starting with Rs 10 and Rs 500 notes. This series has replaced all notes of the Lion capital series. A changed watermark, windowed security thread, latent image, and intaglio features for the visually handicapped were the new features.
•2005 to 2008 – New 50 paise, Rs 1, Rs 2 and Rs 5 stainless steel coins were introduced.
•2009- The printing of Rs 5 notes (which had stopped earlier) resumed.
•July 2010 – The New symbol Rs. is officially adopted.
•2011- 25 paise coin and all paise coins below its value and New series of 50 paise coins and Rs 1, Rs 2, Rs 5 and Rs 10 notes with the new rupee symbol introduced.
•2012 -New ‘₹’ sign is incorporated in notes of the Mahatma Gandhi series in denominations of Rs 10, Rs 20, Rs 50, Rs 100, Rs 500 and Rs 1,000
•Nov 2016- Rs 500 and Rs 1,000 notes discontinued and new Rs 500 and Rs 2,000 notes was introduced.
History of Indian Rupee—Pre-independence:-
1: The pre-independence: series-
The British Parliament introduced the Paper Currency Act of 1861. This gives the right to the British government to Copywrite issue notes in India.
2: Victoria portrait series’s:-
These series contain the first British India notes—Rs 10, Rs 20, Rs 50, Rs 100, Rs 1,000. These were one-sided, with two- language groups. These notes were printed on a hand-die paper.
3: Underprint series:-
The Victoria image series was withdrawn In 1867 by, the British Government. The main reason for the change was to prevent cross-section. You were able to exchange these notes legally in the Currency Circle in which they were issued. But in 1903-11, Rs 5, Rs 10, Rs 50 and Rs 100 were made available for all.
4: Small value notes:-
The reason to start paper currency of small value was due to World War I. On 30 November 1917, the British introduced Rs 1.
5: King’s image series:-
This series was carried by the image of George V and started in May 1923 with Rs 10. Other notes included Rs 5, Rs 10, Rs 50, Rs 100, Rs 500, Rs 1000, and Rs 10,000. This continued till 1935 when the Reserve Bank of India was set up.
Further information, go with the official website of RBI- rbi.org.in
Also read:- Indian History for civil service main exam book by K.K Krishna Reddy. Indian History for civil service main exam book by K.K Krishna Reddy.