The word 'Coin' is derived from the Latin word "cuneus" and it is believed that the first Recorded use of coins was in China and Greece in around 700 BC and in India in the sixth century B.C.
Since prehistoric times, India was always perceived as a land of bounty and colossal wealth. Thus, the country had veered the attention of some of the world`s most celebrated rulers like Alexander, the Huns and the Islamic rulers. It is indeed a complex situation to know today precisely from where the concept of coinage first evolved. But, based upon available evidences, it appears that the concept of `money` (as coins, which by definition here would entail a piece of metal of determined weight embossed with symbol of authority for financial transaction), was conceived by three different civilisations independently and almost at once. The ancient coins were introduced as a means to trade things of daily usage in Asia minor, India and China in 6th century B.C.
It is nowhere recorded in the still-existing literature how coins were manufactured during the early period in India. However, Kautilya (also legendary as Chanakya), the minister of Chandragupta Maurya, has referred in a passage to the counterfeiters of coins (Kutarupakaraka) in his `Arthasastra`, the book on state-craft, which was compiled during the 4th century B.C. Therein, Kautilya has stated a list of objects that were used in the manufacture of coins. Metal was first melted in crucibles (musha) and purified with alkalis (kshara). It was then beaten into sheets in an anvil (adhikarni) with a hammer (mushtika), cut into pieces with clippers (sandansa) and ultimately embossed with dies or punches bearing symbols (bimba-tanka). Thus was the gradual build of ancient coins in India, a facet which was most extraordinary during those laidback times. Apart from the automatic devices, almost the same procedure is used even today in the manufacture of coins in mints all over the world.
The most ancient coins of India are commonly acknowledged as `punch-marked coins`. The Ashtadhyayi cites that the metallic pieces were stamped (ahata) with symbols (rupa). These were in circulation along with the unstamped variety of metallic coins which were referred to as the nishka, satamana and pada. There is also a mention of shana and karshapana, terms employed for different monetary denominations. As the name indicates, these coins carry the symbols of assorted types, punched on pieces of silver of defined weight. Fascinatingly, the earliest Indian coins have no determined shapes and were mostly unifaced. Secondly, these coins are deficient in any inscriptions scripted in contemporary languages and almost always struck in silver. These unique characters makes ancient Indian coins stand very much apart from their contemporaries in Greece. Punch-marked coins are marked with 1-5 (and at times more) marks, representing a choice of symbols. Two well acknowledged numismatists, D. B. Spooner and D.R. Bhandarkar, after careful study, independently had concluded that the punching of these umpteen symbols exemplifying animals, hills, tree and human figures followed a definitive pattern and these coins were always issued under royal authority.
During Rig-Vedic period, tiny kingdoms had begun to come to existence all over the Indian subcontinent from Kabul (Kubha in Sanskrit) to upper Ganges. Most of these were the small states under hereditary monarchs and few republics. These small and large states were referred to as Janapadas and Mahajanpadas. Approximately in 6th century B.C., sixteen Mahajanapadas or realms rose to pre-eminence in India. According to the ancient text Anguttara Nikayas (a Buddhist scripture, the fourth of the five nikayas, or compendiums in the Sutta Pitaka) these Mahajanapadas were - Anga, Magadha, Kashi, Koshala, Vajji, Malla, Vatsa, Chedi, Kuru, Panchala, Matsya, Surasena, Ashvaka, Avanti, Gandhar and Kamboja. One of the most ancient coins of India was minted by one of these mentioned realms. Each of the kingdom had issued distinctive type of silver coins to facilitate commercial traffic.
The Coins of the Indo-Greek Dynasties bore the faces of rulers Menander I and Appolodotus I and the words “BASILEOS SOTHROS” which means “Savior King.” The next set of coins in this era was made of silver and stamped by the King of Syria, Demetrius I.
The Gold Coins of the Kushan Dynasty indicates that the people of this empire (1st Century BC to 230 AD) were prosperous. On the face of the coins were the images of their ruler, Kanishka, standing in an altar indicating that the Indians highly valued religion during this period.
The Gupta Dynasty Coins were circulated during the reign of Chandragupta II, Samudragupta, and Kumaragupta. The first batches of coins depicted the faces of Chandragupta I and his wife, Queen Kumaradevi.
The Western Ganga Dynasty ruled the western part of India from 350 to 1000 CE. Their coins had elephant images symbolizing the Indians’ adoration of these animals during that era. The Kshatrapa Dynasty coins also showed the face of their ruler, Nahapana, who made this dynasty very powerful in western and central India.
The Chola Dynasty ruled over southern India in the 13th Century. The coins in this era were made of gold and copper, depicting images of animals such as the tiger, and goddesses.
The Mughal Dynasty ruled in northern India during the 1500s led by Babur the Tiger. The coinage of Babur was made of gold and silver, reflecting original and creative designs.
During the 17th century, the powerful Maratha Dynasty became the supreme power throughout India. The Maratha coins were made of gold, silver, and copper, bearing the titles: Sri Raja Siva and Chatrapti.
The East India Company was a British trading company that exchanged goods such as cotton, tea, opium, and silk. The first of their coinage were made of copper called Anglina. They also issued rupees featuring King William III and Queen Mary. Later on, they produced rupees and stuiver made of bronze.
The Princely States of India are areas that had sovereignty and were not controlled by Britain. Their coins showed images of the rulers, from Sir Sadiq Mohammed V of the Bahawalpur State to Bala Rama Varma II of the Travancore State.
During the 17th century, some kingdoms that reigned separately from the rest of India were called Independent Kingdoms. One of these kingdoms, Sikkim, depicted its socio-economic as well as political independence in its coinage. The coins of Assam and Tripura were silver rupees which were also among those distributed in these kingdoms.
Ancient Indian coins were made of gold, silver, copper, and bronze. The designs and patterns say so much about their life during that period. Today, the currency of India is the rupee, also called rupiya, roopayi, rubai, and roopa.