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The Indian rupee, introduced by Sher Shah Suri in the 16th century, evolved from a silver coin through British rule to digital form, remaining a key economic pillar
The rupee has evolved from a silver coin to digital transactions. (Shutterstock Image)
The Indian rupee, which we use daily without a thought, carries a history that stretches back nearly five centuries. Few realise that this enduring currency was first introduced by a Muslim ruler in the 16th century, and since then, it has never been discontinued. Today, 485 years after its birth, the rupee remains the backbone of our economy and is recognised far beyond the borders.
The story begins with Sher Shah Suri, the Afghan ruler who briefly displaced the Mughals between 1540 and 1545. Known originally as Farid Khan and born either in Hissar (Haryana) or Sasaram (Bihar), Sher Shah was once a soldier in Babur’s army. His military brilliance helped him defeat Humayun and establish the Suri Empire in North India.
Among his lasting contributions was the introduction of a standardized silver coin weighing 11.53 grams, which he named the ‘Rupee’. Alongside it, he also issued copper coins called ‘Daam’ and gold coins called ‘Mohar’. Of the three, the rupee struck a chord with people, quickly becoming the most widely accepted medium of exchange.
The term ‘Rupee’ itself traces back to Sanskrit. Derived from ‘Rupya’ and ‘Raupya’, meaning shaped, stamped, or made of silver, the name reflects both linguistic tradition and India’s deep cultural heritage. Historians believe Sher Shah Suri, known for his administrative foresight, may have consulted Sanskrit scholars before christening his coin.
After Sher Shah’s death in 1545, the Mughals and later the British continued to mint the rupee, adapting its form and design but never replacing it. During the East India Company’s rule, the first officially issued one-rupee silver coin appeared on August 19, 1757, in Calcutta. Bearing the image of King George II, it weighed around 11.5 grams and became the foundation of colonial India’s currency system.
Daily life at the time revolved around these coins. Historical accounts note that labourers would often be paid three to four silver rupees for a day’s work, enough to sustain a household.
By the early 20th century, the scarcity and rising cost of silver during World War I forced another shift. In 1917, the British government introduced India’s first one-rupee paper note, carrying the image of King George V. This marked the beginning of a gradual move away from precious metals toward the printed money system still in use today.
The rupee’s influence has not been limited to India alone. At different points in history, it circulated in the Persian Gulf and parts of the Arab world before those regions introduced their own currencies. Even now, variants of the rupee remain in use in countries including Nepal, Bhutan, Sri Lanka, Maldives, Pakistan, Mauritius, Seychelles, and Indonesia. In several of these nations, the rupee is either the official currency or unofficially accepted in trade.
From Sher Shah Suri’s silver coin to digital transactions on smartphones, the rupee has evolved dramatically but never lost relevance. Its endurance makes it one of the oldest continuous currencies in the world. Whether in the form of silver, paper, or electronic transfer, the rupee carries with it the legacy of India’s history, rooted in the vision of a 16th-century ruler who sought order and standardisation in trade.
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