Evolution of Indian Currency: 10 Key Episodes that Defined Its Journey

Kautilya's Arthashastra

Kautilyas Arthashastra, written around 300 BCE, established foundational economic principles for ancient India including regulated coinage, taxation, and public markets.

Punch-marked coins

Ancient Indian kingdoms issued silver punch-marked coins from the 6th-3rd centuries BCE, facilitating trade by establishing a standardised monetary system to replace barter.

Mauryan gold mohars

The Mauryan Empire issued influential heavy gold coins from the 3rd-2nd centuries BCE, standardising gold currency in India and enabling international trade.

Gupta gold dinars

Gupta Empire gold coins minted from the 4th-6th centuries CE depicted emperors and gods, showcasing economic wealth and cultural achievements of the era.

Introduction of decimal system

Aryabhattas 7th century CE decimal place value system revolutionised calculations and bookkeeping, becoming the foundation of modern numeric notation used globally in finance.

Mughal tankas & rupees

The Mughal Empire introduced silver tankas and standardised the rupee system from 16th-19th centuries CE, with coins bearing emperor names that enabled trade across their vast territory.

East India Company & private currencies

The East India Company introduced competing private silver rupees and copper pieces from the 17th-19th centuries CE, shifting control of Indias financial system towards colonial interests.

Establishment of RBI

Established in 1935, RBI regulates the monetary system, issues currency, controls inflation and promotes economic stability, playing a vital role in the countrys growth since independence.

Decimalisation of rupee

India decimalised the rupee in 1950, aligning with global standards to streamline financial transactions, simplify calculations and boost economic efficiency.

Demonetisation

Indias 2016 demonetisation of high-value notes aimed to address corruption but sparked debate on its economic impact, marking a pivotal point by increasing digital transactions and financial inclusion discussions.