Brief History of Coins and Currency
India is one of the few claimant nations for earliest introduction and usage of coins, made from stone and metals as store and media for exchange of values. These most probably had ringed bells for stoppage of barter system. Researchers have observed that use of coins in India dates to period from the first millennium before the common era (BCE) to the 6th century BCE. Before such metal coins ‘Cowrie Shells’ and beads used to be exchanged as money for buying of goods and services.
Historians could trace coin minting activities in India during the period of several ancient rulers of kingdoms, viz., Magadha, Ghandhara, Shakya, Surasena, Panchala, etc. They launched such coins for use as legal tenders by their subjects. Those coins were known as Pana or Karshapanas. Historians could also find that Chinese and Lydian rulers of middle east region were two of the earliest introducers of coins. Mughal emperor Sher Shah Suri minted the first gold coin, called Mohur in India, during his rule between 1540 to 1545. Storylines indicate that the modern version of the name of Indian currency ‘Rupee’ owes its historical lineage from the silver coin called ‘Rupiya minted by Sher Shah Suri. It is pertinent to note that Indian word for silver is ‘Rupa’

Fiat Currency and Bank Money

This tradition of metallic coins continued till the advent of British era in India around which time paper currency notes started replacing metal coins with high intrinsic values. However, centuries old tradition of using metal coins continues even today albeit on a reducing trend. The colonial rulers of India started blocking village level Indigenous bankers, who used to operate with metal coins, at the onset of their rule. Organised banks, sponsored by both private owners and government, started operating on a regional basis.
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