COINAGE: AN INTERESTING JOURNEY

The first coins were made of electrum, an alloy of silver and gold. Before the coinage era, many other instruments were used as money for trading but only until actual coins appeared on the scene and the social effects of having a proper form of currency started to take hold. India has seen many realms rising and falling to dust in various parts of the country, and putting forth their own coinage. As such, the country, which then extended from the Himalayas to Cape Comorin and from the tip of Burma to the Arabian Sea, possesses a cosmic historical treasure of several thousands of varieties of coins in various metals, thereby indicating that the history of Indian coins goes back to undocumented times indeed.

East India Company, 1835

The three presidencies of Bengal, Bombay and Madras established by the British East India Company issued their own independent coinages until 1835. All three issued rupees and fractions thereof down to 1⁄8 and 1⁄16 of a rupee in silver. Madras had also issued Rs 2 coins. Copper denominations were more varied. Bengal issued one-pie, 1⁄2, one and two-paise coins. Bombay issued 1-pie, 1⁄4, 1⁄2, 1, 11⁄2, two and four-paise coins. Madras issued copper coins for two and four pies and one, two and four-paisa, with the first two denominated as 1⁄2 and one dub (or 1⁄96 and 1⁄48) rupee, also issuing the Madras ‘fanam’ until 1815.

All these three presidencies issued gold mohurs and fractions of mohurs, including 1⁄16, 1⁄2, 1⁄4 in Bengal, 1⁄15 (a gold rupee) and 1⁄3 (pancia) in Bombay and 1⁄4, 1⁄3 and 1⁄2 in Madras. In 1835, a single coinage for the EIC was introduced. It consisted of copper 1⁄12, 1⁄4 and 1⁄2 anna, silver 1⁄4, 1⁄3 and 1 rupee, and gold 1 and 2 mohurs. In 1841, silver 2 annas were added, followed by copper 1⁄2 pice in 1853. The coinage of the EIC continued to be issued until 1862, even after the company had been taken over by the Crown.

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Regal Issues, 1862–1947

In 1862, coins were introduced (known as ‘regal issues’) which bore the portrait of Queen Victoria and the designation ‘India’. Their denominations were 1⁄12 anna, 1⁄2 pice, 1⁄4 and 1⁄2 anna (all in copper), 2 annas, 1⁄4, 1⁄2 and one rupee (silver), and Rs 5 and 10, and one mohur (gold). The gold denominations ceased production in 1891, and no 1⁄2 anna coins were issued after 1877. In 1906, bronze replaced copper for the lowest three denominations; in 1907, a cupro-nickel one-anna coin was introduced. In 1918–1919 cupro-nickel two, four and eight-annas were introduced, although the four and eight-annas coins were only issued till 1921 and did not replace their silver equivalents. In 1918, the Bombay mint also struck gold sovereigns and 15-rupee coins identical in size to the sovereigns as an emergency measure during World War I.

In the early 1940s, several changes were implemented. The 1⁄12 anna and 1⁄2 pice ceased production; the 1⁄4 anna was changed to a bronze, holed coin; cupro-nickel and nickel-brass 1⁄2 anna coins were introduced; nickel-brass was used to produce some one and two anna coins; and silver composition was reduced from 91.7 to 50 per cent. The last of the regal issues were cupro-nickel 1⁄4, 1⁄2 and Rs 1 pieces minted in 1946 and 1947, bearing the image of King George VI on the obverse and an Indian tiger on the reverse.

Independent Predecimal Issues, 1950–1957

India’s first coins after independence were issued in 1950 in 1 pice, 1⁄2, one and two annas, 1⁄4, 1⁄2 and Rs 1 denominations. The sizes and composition were the same as the final regal issues, except for the one pice which was bronze, but not holed.

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Independent Decimal Issues, 1957

The first decimal coin issues in India consisted of 1, 2, 5, 10, 25 and 50 naye paise, and Rs 1. The 1 naya paisa was bronze; the 2, 5 and 10 naye paise were cupro-nickel, and the 25 naye paise (nicknamed chavanni; 25 naye paise equals 4 annas), 50 naye paise (also called athanni; 50 naye paise equaled 8 old annas) and Rs 1 coins were nickel.

In 1964, the word naya (e) was removed from all coins. Between 1964 and 1967, aluminium one, two, three, five and ten-paise coins were introduced. In 1968 nickel-brass 20-paise coins were introduced, and replaced by aluminium coins in 1982. Between 1972 and 1975, cupro-nickel replaced nickel in the 25 and 50-paise and the Rs 1 coins; in 1982, cupro-nickel Rs 2 coins were introduced. In 1988 stainless steel 10, 25 and 50 paise coins were introduced, followed by Rs 1 and 5 coins in 1992. Coins of Rs 5, made from brass, are being minted by the Reserve Bank of India (RBI).

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Between 2005 and 2008 new, lighter 50-paise, Rs 1, 2 and 5 coins were introduced, made from ferritic stainless steel. The move was prompted by the melting down of older coins, whose face value was less than their scrap value. The demonetization of the 25 (chavanni) paise coin and all paise coins below it took place, and a new series of coins (50 paise – nicknamed athanni and Rs 1, 2, 5 and 10 with the new rupee symbol) were put into circulation in 2011. Coins commonly in circulation are of Rs 1, 2, 5 and 10. Although it is still legal tender, the 50 paise (athanni) coin is rarely seen in circulation.

Special Coins

After independence, the Government of India minted coins imprinted with Indian statesmen, historical and religious figures. In 2010 and 2011, for the first time ever, Rs 75, Rs 150 and Rs 1,000 coins were minted in India to commemorate the platinum jubilee of the Reserve Bank of India, the 150th birth anniversary of Rabindranath Tagore and 1,000 years of the Brihadeeswarar Temple respectively. In 2012 a Rs 60 coin was also issued to commemorate 60 years of the Government of India Mint, Kolkata.

Now that we are well-versed with the currency and coins concepts, we will move on to bank notes in the next series.

Disclaimer: The above opinion is that of the author and is for reference only.