History of Money $$$$$$$$$$.

Seriously who does not like the smell of money. Freshly minted currency will always be on ones mind more than anything in the world. In today's world Money is Power and Power is Money. World will care less if you dont have any money. Money is the only form of communication that unites the whole mankind in one BIG MELTING POT. The big melting pot is nothing but the crucible of desire and greed. If money would not have its significance world in which we live today would not be the same

Well i got my hand in a piece that describes the EVOLUTION OF MONEY IN (SUBCONTINENT) - INDIA.

Monetary system harks back to over two and a half millennia. Two and a half millennia does not include a long period of monetary dark age which began 1.5 million years ago when the earliest human came to inhabit the subcontinent. Earliest humans survived on foraging and hunting till the discovery of rudimentary farming 8000 years ago. It was then earliest humans made their settlements in North Western India and began a rudimentary barter of mutual agreements.

1. From Harappa to 1300 BCE - Barter system:

Barter system had its genesis 5500 years ago in North Western India on the banks of Sindhu and Saraswati river. They had a complex monetary system based on fixed weights and quality goods. Even international trade with Persia and Gulf was conducted. Barter revolved around gold, silver, bronze and pottery. Period came to an end in 1300 BC with dying of the Saraswati River. The movie Mohenjo Daro explains it in a way.

2. Followed by that comes the Vedic period. Cow emerged as a medium of exchange between upper classes. Inconvenient handling and perishable nature led to the use of precious metals like gold and silver. HIRANYA was the first name used for gold and silver in India. Subsequently the names were changed to SUVARNA and PITH. Gold units were referred to as Rajata.

Origin of Tolla: 100 times the weight of a seed is a Ratti. 96 Rattis is 1 Tolla. Tolla became the weight standard for the Indian coin in early historic India. Tolla has its room from the earliest historic till British and current day weighing of precious metals.

3. Post Vedic period: This is the rise of India's iron age kingdom - Mahajanpada - 5 century BC. Its reign empowered to issue India's first state certified coinage in Silver. Coinage was used from Afghanistan to Deccan peninsula to Saurashtra to Ancient Bengal in the East. They punched unique emblems on each side of the coin. Coins in each local series correspond to definite weight range usually multiples of Ratti keeping in mind the precocious nature of Silver. Post Vedic period was India's first state certified coin in Silver.

4. Pannini a fifth century Sanskrit grammarian used the term Rupya to describe beautiful images on these coins. Rupaiya currently used is derived from the word Rupya. Monetary system maintained on these punch mark coins for 500 years till date including the Mauryan empire. In the Mauryan empire 32 Rattis was the standard weight for a silver coin. Silver coin issued was called Karshapara and was used from Khyber pass to Karnataka. Karshapara is what gave the word Kaasu  for money in South Indian languages. Kaasu later then became Kaash. Kaash was used colloquially in the colonial era which gradually evolved as Cash in English. I would not have even guessed that the word cash has South Indian roots.

Mauryas Silver coin - Karshapara- - Kaasu - Kaash - Cash.

5. Sixth century to Thirteenth century: India saw a big change in monetary system after the invasion of India by Alexander the Great in 326 BC. Indians encountered cutting edge Greek technology (Die struck coins). Bronze dies engraved with negative designs on both sides and striking them simultaneously on a coin black. Alexanders successor married Mauryas royal. Seleucids maintained friendly ties till the Ashoka period. Eventually local governors became independent establishing a great kingdom of Greek Bactria. The Bactrian Greeks forayed into India with the fall of Mauryan empire. Indo-Greek kingdom engulfed large areas of (Kabul-Gandhara). Die struck coins with life images of  Greek deities and rulers issued. So in short India had coins in its history with Greek deities.

Trade with Rome made it to issue its first gold coins. Coin had images of deities from (Indo-Greek-Zoroastrian) pantheon. Gupta dynasty amplified the use of gold coins Gold coins issued were in Brahmi script and were shown to have the Gupta emperors hunting lions, posing with weapons and playing the Veena. Gupta dynasty ended up in 6 th century by Hun invasion. Number of local kingdom rose in different regions issuing different coins of mixed Gupta dynasty and foreign coins. Paradigm for Gold standard was maintained in South India for the Roman golden coin. Gold coins had a heavy influence from the sixth to thirteenth century.

6. 10 th century - 12 th century:  This century in India had Islamic coinage with images and praises for Allah and Prophet Muhammad. Sindh became the first part of the Indian subcontinent to come under Islamic influence which issued by a local coinage. Muhammad Gohri established his Delhi conquest in 1192. (1210-1232) - Indo - Islamic coinage established. Indo-Islamic coinage dominant in medieval India under 5 dynasties of Delhi Sultanate.

7. Mughal rule: Emperor Akbar introduced Rupaiya (bimetallic coin), paisa (copper coin). Gold coin was called Ashrafi/Mohur. Coins employed the image of Akbar and Jehangir. Akbar introduced market controlled exchange rates between three coins. Numerous Mughal rulers challenged the monopoly over the coinage which included Shivaji, Sikh rulers etc etc. European powers issued coins in Western/Southern/Eastern bases. English were punished by Emperor Aurangzeb for issuing such coins. Gradually the Mughal empire saw its decline followed by the English to gain access over the Indian subcontinent. Delhi came under English control in 1803. English continued the charade of issuing coins under the Mughal emperor till 1835.

8. 1835-1858: Abrupt switch over to Uniform coinage with name and image of the English monarch. Denominations of currency included Mohur/Rupaiya/Paisa bearing the name of East India Company and British Monarch.

9. 1862-1947: India revolt against the East India Company forced it to give power directly to the British Crown. India Paper Currency Act established in 1861. RBI was established in 1935 for monitoring India's Monetary System.

10. 1940-1945: Stoppage of issuing the silver coin. Replacement of silver by half silver.  Different types of alloys were used in coins by 1947.  Post independence British currency continued to be legal tender till 1950. In 1956 Republic of India issued currency with its emblem and 1957 coinage was turned into a decimal system.

All i can say is WOW as i am just amazed to know the brief history of money. It is definitely indeed a remarkable feat to see mankind evolve with money in the equation from Barter to Market economics. All of our lives revolve around money and for life to sustain, money will and always be a integral part of our lives.

Apart from this what today connects money from its past to the present is Banks. Well  recently i had a chance to hear Chidambaram (ex Finance and Home minister), Mohammad Yunus (Grameen Bank) and PAYTM CEO give their views on the current Banking scenario and Microfinance especially. It was a enlightening speech as i never knew what Microfinance in Bangladesh is. His economic model has been a success not only in Bangladesh but through out the world. He helps the underprivileged by giving soft loans who eventually make a living with their entrepreneurship skills.

Current day scenario: Money was mediating on striking a deal. Banks in India have become a mediator by giving loans. Bank follows money. For micro finance to work in India new laws in banking need to implemented. 40 % of India is unbanked. There are 7000 villages in India and building infrastructure is not easy and will take time. Physical infrastructure has to be evenly spread for technology to spread its wings. Grameen Bank on the contrary has infiltrated each and every village of Bangladesh and has branches even in the US. Bangladesh excels India in banking based on the cheer account holders. Grameen bank unlike other bank helps underprivileged people to start new small scale business and be self made entrepreneurs.

All said so far things have been interesting  when it comes to money. Money is an evolving medium and is now currently seeing a new face of  Prime Minister Modis Economics. He will definitely leave some kind of legacy behind in the world of Money.

Asians have reached a milestone in the world of Subcontinent economics so far and there is yet more to come with mobile wallets and what not.