10/08/2014
THE HISTORY OF RUPEE
The history of the rupees traces back to Ancient India in circa 6th century BC. Ancient India was one of the earliest issuers of coins in the world,[2] along with the Chinese wen and Lydian staters.
The word rūpiya is alleged to be derived from a Dravidian word rūpa, which means "wrought silver, a coin of silver",[3] in origin an adjective meaning "shapely", with a more specific meaning of "stamped, impressed", whence "coin". It is derived from the noun rūpa "shape, likeness, image". The word rūpa is being further identified as having sprung from the Dravidian[4]
Indo-Aryan origin is more likely compare Sanskrit rūpá, n.,m. A form, beauty (Rigveda), rūpaka adjective and n.,m. A particular coin Pañcatantra, rūpya,*rūpiya-, adj. beautiful, bearing a stamp Pāṇini., n. silver Mahabharata. There is no evidence of transmission to Indo-Aryan from Dravidian and textual evidence dates to well before any references in the later Dravidian.[5]
Arthashastra, written by Chanakya, prime minister to the first Maurya emperor Chandragupta Maurya(c. 340-290 BCE), mentions silver coins as rupyarupa, other types including gold coins (Suvarnarupa), copper coins ( Tamararupa) and lead coins (Sisarupa) are mentioned. Rupa means form or shape, example, Rupyarupa, Rupya - wrought silver, rupa - form.[1]
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 termed the Rupiya.[3][6] The silver coin remained in use during the Mughal period, Maratha era as well as in British India.[7] Among the earliest issues of paper 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 (1784–91).
The Indian rupee was a silver-based currency during much of the 19th century, which had severe consequences on the standard value of the currency, as stronger economies were on the gold standard. During British rule, and the first decade of independence, the rupee was subdivided into 16 annas. Each anna was subdivided into either 4 paisas or 12 pies. So one rupee was equal to 16 annas, 64 paises of 192 pies. In 1957, decimalisation occurred and the rupee was divided into 100 naye paise (Hindi/Urdu for new paisas). After a few years, the initial "naye" was dropped.
For many years in the early and mid-20th century, the Indian 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.
