History of the Indian Rupee
The currency of India is the rupee. Rupee is derived from the Sanskrit rupyakam which means coin of silver ("Indian Rupee"). The rupee has transitioned through several governing bodies over its recorded history. Each transitional phase can be traced by the examples of the rupee notes as follows: early private and semi-governmental banks, Government of India, King George V, King George VI, Indo-French Territories, Indo-Portuguese Territories, Prisoner-of-War Coupons, Princely States, cash coupons of Princely States, and post Independent India (Indian Currency Collector Online).
Early Private and Semi-Governmental Banks (1770-1861 A.D.)
The European traders, especially those with the East India Company, were familiar with using paper currency to further paying for their trades. Previously in India, banking existed dating all the way back 500 B.C. as a commercial activity among the tradesmen of the time (Reserve Bank of India). Yet as the European traders began their commerce in India no form of paper currency existed. Private Banks were created, initially in the province of Bengal. The first such bank to implement paper money was established by Governor Warren Hastings in Calcutta around 1770 A.D. (Jhunjhunwalla Online).
Following the first Private Bank, the Bank of Bengal was formed. The paper money printed by the Bank of Bengal was circulated on a much wider basis, as well as being accepted as payment for certain government dues. The Bank of Bengal was the first bank in India to have a government share in its working capital. The paper money the Bank of Bengal issued ranged in denominations from rupee (Rs.) 10 to rupee (Rs.) 1000 (Jhunjhunwalla Online).
Bombay had a large commercial boom in the 19th century. This boom led to the Bank of Bombay being established, which was chartered in 1840. Bank of Bombay's charter meant the bank had the authority to issue and print its own paper money or notes. Bank of Bombay also enjoyed a government share in its
Early Private and Semi-Governmental Banks (1770-1861 A.D.)
The European traders, especially those with the East India Company, were familiar with using paper currency to further paying for their trades. Previously in India, banking existed dating all the way back 500 B.C. as a commercial activity among the tradesmen of the time (Reserve Bank of India). Yet as the European traders began their commerce in India no form of paper currency existed. Private Banks were created, initially in the province of Bengal. The first such bank to implement paper money was established by Governor Warren Hastings in Calcutta around 1770 A.D. (Jhunjhunwalla Online).
Following the first Private Bank, the Bank of Bengal was formed. The paper money printed by the Bank of Bengal was circulated on a much wider basis, as well as being accepted as payment for certain government dues. The Bank of Bengal was the first bank in India to have a government share in its working capital. The paper money the Bank of Bengal issued ranged in denominations from rupee (Rs.) 10 to rupee (Rs.) 1000 (Jhunjhunwalla Online).
Bombay had a large commercial boom in the 19th century. This boom led to the Bank of Bombay being established, which was chartered in 1840. Bank of Bombay's charter meant the bank had the authority to issue and print its own paper money or notes. Bank of Bombay also enjoyed a government share in its
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