The Evolution of India Rupee

Have you ever wondered how the Indian Rupee took birth? The Indian rupee, as you know it today, went through some drastic changes over centuries to aid our modern economy. Gandhi's smile on every note carries the secret of the past. Let us rewind to discover when and how India adopted the rupee.

Embark on the journey of knowing the rupee; Image Source- India Times

The earliest traces of the Indian rupee take us into the heart of Ancient India. Chanakya's famous book of Arthashastra mentions the coins issued by Chandragupta Maurya. Amongst these coins, a silver coin called rupyarupa has the closest affinity to the modern-day rupee. The rest of the currency consisted of suvarnarupa (gold coin), tamrupa (copper coin) and sisarupa (lead coin).

All of this changed with the entry of Turkish invaders. Delhi Sultanate issued its coins with Islamic calligraphy, and the possibility of Mauryan ruyarupa to develop further also diminished.

The picture changed in terms of 'new rule, new currency' until the Indian monetary system settled on Rupiya. It happened during Sher Shah Suri's five-year rule from 1540 to 1545. After defeating Humayun, he issued an 11.53 grams silver coin, naming it Rupiya. Surprisingly, Sher Shah's rupiya survived three eras of Mughal rule, Maratha rule and the British Raj.

The British administration brought some changes in shape and form, but rupiya remained steady. Rupiya was then available in paper form, converting the coin into paper money. After the Revolt of 1857, the British Raj acknowledged the rupee as the official currency of colonial India. The native designs were replaced by the face of King George VI. And that's how the concept of printing the face of eminent figures entered the currency of the Indian subcontinent.

Things continued in a similar pattern until India gained independence. Post independent era converted the paper currency back to its original coin form, simultaneously issuing one rupee paper currency. Independent India's first printed note was a 1 rupee note with the Lion Capital at Sarnath.

After this, every decade brought forth new symbols of independent India and new notes were issued under the Reserve Bank of India. It was not until 1987 when Gandhi's portrait founds its place in Rs. 500 note to aid the growing Indian economy. Since the late 1990s, the Gandhi Series found a prominent place in Indian rupees. It was also the period when the notes in Indian currency went through changes of colour and security features in the denominations of 5, 10, 20, 50, 100, 500 and 1000.

The next big change in the appearance and denomination of the currency came with the demonetisation of 2016. The Gandhian portrait continues to be a part of the banknotes with an even more colourful palette.

As we all know, the Indian rupee is still very much a living entity in our economy. Let us see what the future has in store for our good ol' rupee.

Sher Shah’s Rupiya; Image Source- Wikipedia