These are perhaps one of the many hidden secrets of India that most of us have been unaware of. Turns out, there was something known as the ‘Hyderabadi Rupee’ and it coexisted with the Indian rupee even after India’s independence!
Post-1857, the state of Hyderabad was one of the largest in the country. The state would often be fondly remembered as the ‘Dominion of His Exalted Highness, The Nizam’. It used to be massive, covering territories including present day Karnataka, Andhra Pradesh and Maharashtra.
It is said that Hyderabad would time and again try to set up a banking company which could issue paper money, but the British were averse to this idea. However, the monetary contributions made by Hyderabad to the First World War, when there was an acute shortage of silver, led them to accept paper currency in denominations of Rs.10/- and Rs.100/-, issued under the Hyderabad Currency Act in 1918. Rs. 1 and Rs. 5 notes were subsequently issued in 1919 and Rs. 1000 notes were issued in 1926.
The currency was designated the ‘Osmania Sicca’
In 1942, the government of Hyderabad presented Hyderabad State Bank with the responsibility of managing the Osmania Sicca. Hyderabad continued to mint its own coins post-independence after the Nizam refused to abide by the newly formed republic. In 1950, the Indian currency was introduced alongside the local Hyderabadi currency.
In 1950, 7 Hyderabadi Rupees = 6 Indian Rupees.
From 1951, the Indian rupee became the main circulating currency in the country. The Hyderabadi currency ceased to exist, but was not demonetised right until 1959!
Article By : Rishabh Banerji
Courtesy Citation : Indiatimes.com