<P> Vedic origin is more likely, as Sanskrit rūpá, n., m. a form, beauty (Rigveda), rūpaka adjective and n., m. a particular coin Pañcatantra, rūpya, * rūpiya -, adj . beautiful, bearing a stamp Pāṇini., n . silver Mahabharata . There is no evidence of transmission to Indo - Aryan from Dravidian and textual evidence dates to well before any references in the later Dravidian . </P> <P> Arthashastra, written by Chanakya, prime minister to the first Maurya emperor Chandragupta Maurya (c. 340--290 BCE), mentions silver coins as rupyarupa, other types including gold coins (Suvarnarupa), copper coins (Tamararupa) and lead coins (Sisarupa) are mentioned . Rupa means form or shape, example, Rupyarupa, Rupya--wrought silver, rupa--form . </P> <P> Sher Shah Suri, during his five - year rule from 1540 to 1545, set up a new civic and military administration and issued a coin of silver, weighing 178 grains, which was termed the Rupiya . The silver coin remained in use during the Mughal period, Maratha era as well as in British India . Among the earliest issues of paper rupees include the Bank of Hindostan (1770--1832), the General Bank of Bengal and Bihar (1773--75, established by Warren Hastings), and the Bengal Bank (1784--91). </P> <P> The Indian rupee was a silver - based currency during much of the 19th century, which had severe consequences on the standard value of the currency, as stronger economies were on the gold standard . During British rule, and the first decade of independence, the rupee was subdivided into 16 annas . Each anna was subdivided into either 6 paisas . So one rupee was equal to 96 paisa . In 1957, decimalisation occurred and the rupee was divided into 100 naye paise (Hindi / Urdu for new paisas). After a few years, the initial "naye" was dropped . </P>

The mughals adopted the rupee from the currency developed by