Introduction of Coinage | History Optional for UPSC (Notes) PDF Download

The Introduction and Evolution of Coins in Ancient India

The introduction of coins was driven by the challenges of the barter system, particularly when it came to smaller or fractional items or when the needs of the parties involved were not evenly matched. In the Vedic texts, the terms nishka and satamana are believed to refer to coins, although these terms may have originally denoted prestige objects made of metals like silver and copper. During the Vedic period, exchange primarily occurred through barter, with cattle sometimes serving as a form of currency.

Early Coins in India

• The earliest coins in India were minted around the 6th century BC by the Mahajanapadas of the Indo-Gangetic Plain, predating the invasion of Alexander the Great in the 4th century BC. This period marked the first use of metal coins by cities.
• One of the earliest forms of Indian coinage was the punch-marked coin, which dates back to between the 6th and 2nd centuries BC. These coins were created by manually punching various symbols onto the metal while it was still hot.

Symbols and Designs on Coins

• The symbols punched onto these coins included various patterns, human figures, animals, and objects like wheels and trees, with the sun and six-armed symbols being particularly common. The prominent use of the sun symbol is not surprising, as across different cultures and civilizations, the sun has been associated with divine power and the source of life.
• The exact meaning and significance of the symbols used on these coins, their arrangement, and any potential connections to specific kings, mints, or denominations remain unclear. Without any inscriptions or legends on the punch-marked coins, scholars have attributed them to various Janapadas based on the nature, number, and type of symbols, which were often specific to particular regions.

Characteristics of Punch-Marked Coins

• Most punch-marked coins from this period were uniface, meaning they had designs on only one side. However, some featured smaller counter-punches on both sides. These counter-punches may have served as guarantees of weight or authenticity by the issuer or as tests for the metal's purity, suggesting that forgers may have existed even then.
• During this period, punch-marked coins were known as Puranas, Karshapanas, or Panas. Some coins featured single symbols, such as a humped bull in Saurashtra or a swastika in Dakshin Panchala, while others, like Magadha, displayed multiple symbols.

Materials and Production of Coins

• These coins were typically made of silver(and sometimes copper) and had a standard weight but irregular shapes. They were produced by cutting silver bars into pieces of the correct weight and then shaping the edges of the coins. These coins are mentioned in ancient texts such as the Manu, Panini, and Buddhist Jataka stories.
• The basic silver punch-marked coin of the period was known as Kasapana or pana, weighing about 3.76 grams. The masa or masika weighed one-sixteenth of this. Various intermediate weights were used, along with larger silver coins of 30 and 20 masas and smaller half masa coins.
• Punch-marked copper coins were based on a different standard, with a masa of 0.58 grams and a Karsapana of 9.33 grams. Copper quarter masas, known as Kakinis, and larger coins of 20, 30, and 45 copper masas were also found. Only one gold punch-marked coin is known from this period, as gold was rarely minted before the beginning of the Christian era.

Maurya Coins

• During the Mauryan period, punch-marked coins were produced in large quantities, continuing the tradition of coinage from the Magadha Kingdom, from which the Mauryan Empire emerged. These coins typically contained between 50 to 54 grains of silver.
• The standard coin, known as the Karshapana (pana),had several denominations mentioned in the Arthasastra, such as ardhapana (half pana), pada (quarter pana), and ashta-bhaga or arshapadika (one-eighth pana). However, only the Karshapana has been widely found.
• The coins, while not artistically crafted, featured recognizable designs, including Buddhist shrines, chaityas, and animals like elephants, horses, and lions.

Literary Sources

• Texts from the Post-Vedic and Mauryan periods, such as the Ashtadhyayi,Arthasastra, and Buddhist literature, mention various types of coins:
• Satmana (larger silver coin)
• Karsapana (smaller silver coin) - the most common
• Pana (silver coin)
• Masaka (large copper coin)
• Kakini (smaller silver coin)
• The Ashtadhyayi also refers to salaries of officials being paid in Pana coins.

Geographical Extent of Coins

• The coins were widely used throughout India, including the northwestern regions, the Gangetic valley, the Deccan, and even the southern parts of the subcontinent.

Important Hoards

• Significant hoards of these coins have been found in various locations, including Taxila, Amravati, Eran (Madhya Pradesh), Azamgarh (Uttar Pradesh), Nandagaon (Uttar Pradesh), and others.

Metals Used

• The coins were primarily made of silver, with some made of copper, while gold was notably absent.

Shape of the Coins

• The coins exhibited irregular shapes, with some being rectangular, square, round, or having no specific shape at all.

Design of the Coins

• The obverse (front) of the coins typically featured one or more symbols, while the reverse (back) was either blank or had a small symbol. There were no inscriptions or legends on the coins.
• Various symbols included human figures,weapons,animals like humped bulls (notably in Saurashtra),tools,trees,geometric designs like the Swastika (especially in Dakshina Panchala),mountains,the sun,wheels, and birds like peacocks (noted in Mauryan iconography).
• Influence from Buddhism is evident in designs featuring trees within railings.

Issuers of the Coins

• The coins were primarily issued by the state, although there are references suggesting the possibility of city or guild issues, indicating private minting.
• City issues may have been associated with places like Kausambi, Era, Mahismati, Vidisha, Taxila, Varanasi, and others.

Other Aspects

• A notable discovery from the Kabul region is a bent bar coin with no symbols.
• Evidences from Mauryan times indicate state regulation of coinage, with specific officers responsible for oversight. These included:
• Lakshanadhyaksha - in charge of the mint
• Roopdarshak and Roopdarka - examiners of coins
• The Mauryan state appears to have monopolized coin issuance, and the circulation of coins increased during this period compared to earlier times.

Technology and Weight

• The coins were produced using punching technology, where symbols were hammered onto the coins.
• They were made of silver of a standard weight but had irregular shapes. This was achieved by cutting silver bars into pieces and adjusting the edges of the coins to achieve the correct weight.
• The basic unit of coin standard was “Ratti”, also known as “Raktika” or “Krishnala.” One Ratti is equivalent to 1.8 grains (with 1 grain being 64.79 mg).
• There were two weight standards for silver coins:
• Satamana = 180 grains = 100 ratties
• Karspana = 32 ratties

Transition in Coinage

• In the north, following the decline of the Maurya Empire and the rising influence of the Greco-Bactrians and Indo-Greeks, punch-marked coins were gradually replaced by cast die-struck coins. This transition is evident in the Post-Mauryan coinage of Gandhara.