History of Indian Currency: Pice to Rupees

Bio

Shreyansh Singh, an IIT Kanpur alumnus, has eight years of experience in the finance industry. He has spent 5 years at American Express developing mid to long-term strategies for multiple markets including US, Europe and India. Shreyansh currently leads Growth and Strategy initiatives at Pice.

27 Sep 24
5 mins

Shreyansh Singh

08 Mins
27-09-24

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Table of Contents

What is Pice?

Colonial Currency: The Pice, 1/64th of a Rupee, was widely used in British India for small transactions.
Decimalization: In 1957, India replaced the old system, introducing Paise and simplifying the currency.
Historical Role: The Pice coin was central to everyday trade in both Mughal and British eras.
Modern Adaptation: The "Pice" app continues the legacy, simplifying payments for SMEs, including GST.
Business Efficiency: The PICE app offers streamlined solutions for vendor, utility, and rent payments, inspired by the ease of the old coin system.

The journey from British currency systems like the "Anna" and "Pice" to the Indian Rupee is rooted in India's colonial past. Let’s explore this transformation:

Pre-British India: Local and Mughal Coins

Before the British rule, there were Mughal dynasty rules, and other emperors were also ruling. Thus, each king had his own type of coin, which were used as a means of payments and trading in those days. The short list of the coins used at that time is mentioned below:

Babur: Silver Tanka or shahrukhi
Humayun: Haidar Dughlat
Akbar: Silver Rupee and Jalalab
Sher Shah Suri: Rupee
Muhammad Bin Tughlaq: Bronze coins (Later withdrawn and replaced by silver and gold coins)
Mahajanpadas( Republic Kingdom of Ancient India): Panas
East India Company( 1600 AD) - Gold coins( Carolina), Silver coins ( Angelina), Copper coins( cupperoon), Tin coins( Tinny)
East India Company(1857 AD) - Rupee (Later made official currency of India)

British Colonial Currency System (1835-1947):

When the British East India Company took the power to rule India, they began to mint their own coins along with the Indian Rupees.

Pice (or Paisa): The minimal currency unit, 1/64 of a Rupee.
Anna: An modest unit, with 16 Annas making 1 rupee.
Rupee: The major currency unit, which continued under British rule.

The British India Coinage Act of 1835 standardized coinage in British India, resulting in the rupee becoming the official currency. The British introduced coins like:

1 Pice (Paisa) (small copper coins)
2 Anna (silver coins)
4 Anna (quarter Rupee) (silver)
8 Anna (half Rupee) (silver)

Currency Unit	Description	Denomination Breakdown	Material
Rupee	Main currency unit under British rule	1 Rupee = 16 Annas = 64 Pice	Silver/Gold
Anna	Fractional unit of the Rupee	16 Annas = 1 Rupee, 1 Anna = 4 Pice	Silver (4 and 8 Annas)
Pice (Paisa)	Smallest unit, copper coin	64 Pice = 1 Rupee, 1 Anna = 4 Pice	Copper
Pie	Subdivision of Pice	3 Pies = 1 Pice	Copper

The system remained in place, with a rupee being divided into 16 annas, each anna divided into 4 Pice.

3. Post-Independence Currency Reform (1947-1957):

India, after getting their independence in 1947, did not change the British currency system for some time. But then in 1957, India floated a decimal system for its currency.

The Rupee was now divided into 100 Naye Paise (New Paise). This reform simplified the currency system, as the traditional division of 1 Rupee into 16 Annas and 64 Pice was replaced by the decimal division into Paise.

Coins such as the Anna and Pice were gradually phased out and replaced by Paise (1, 2, 5, 10, 20, and 50 Paise), as well as Rupee coins.

British Currency Breakdown:

Coin	Value (in Rupees)	Description
1 Rupee coin	1 Rupee	Made of silver/gold
Half Rupee (8 Annas)	0.5 Rupee	Half Rupee
Quarter Rupee (4 Annas)	0.25 Rupee	Silver coin
2 Anna coin	0.125 Rupee (1/8)	Fractional silver coin
1 Anna coin	0.0625 Rupee (1/16)	Small silver coin
1 Pice (or Paisa)	1/64 Rupee	Copper coin, smallest denomination

4. The Modern Indian Rupee (Post-1957):

As inflation phased out several smaller coins including the 1 Paise and 2 Paise, the change to decimal system was finished by the 1960s and over time. Modern Rupees now consist of coins as well as notes valued one Rupee to 2000 Rupees.

This journey reflects India’s evolution from British colonial coinage to an independent, decimalized currency system centered around the Rupee.

Old System

New System (1957 onwards)

1 Rupee = 16 Annas = 64 Pice = 192 Pies

1 Rupee = 100 Naye Paise

Since the blog is all about Pice Currency, let’s know about a company named on Pice.

What is Pice?

The inception of Pice as a business-focused app came from the original name, Pice Coins. Like how pice coins made small transactions easier for the masses, a company named "Pice" designed to simplify and streamline GST payment, vendor, utility, and rent for small and medium-sized enterprises (SME) via credit card and UPI payment.

💡If you want to streamline your payment and make GST payments, consider using the PICE App. Explore the PICE App today and take your export business to new heights.

FAQs

What was the significance of the Pice in British India?

The Pice was the smallest denomination in British India, valued at 1/64th of a Rupee. It played a crucial role in facilitating small daily transactions, making it accessible for common people. The Pice, along with other units like Anna and Rupee, represented a complex system of currency divisions.

How did the Pice coin evolve post-Independence?

After India gained independence, the Pice was used until 1957, when the country adopted a decimal system. This reform replaced the Pice with the "Paise," and the Rupee was divided into 100 Naye Paise, making the currency system simpler and more efficient for transactions.

What is the PICE app, and how does it relate to the old Pice currency?

The PICE app is a modern financial tool designed for small and medium-sized enterprises (SMEs) to streamline payments like GST, vendor, utility, and rent payments. Its name draws inspiration from the old Pice coin, symbolizing simplicity and efficiency in handling small transactions, similar to how the Pice was used historically.

How can SMEs benefit from using the PICE app?

The PICE app helps SMEs by providing an easy and efficient platform for making payments such as GST, rent, and utilities. It simplifies the payment process, reduces errors, and helps businesses manage their cash flow more effectively, saving time and administrative costs.

Why did India shift from the old system of Annas and Pice to the decimal system?

India adopted the decimal system in 1957 to simplify currency calculations. Under the old system, 1 Rupee was divided into 16 Annas and 64 Pice, which could be confusing. The decimal system introduced a more straightforward division—1 Rupee into 100 Paise—making it easier for people to understand and use the currency.