British India was divided into several administrative categories. There was the Presidency India, which comprised of states ruled by British Governors under the Viceroy.
The other category was the Native Ruled India. This comprised of 552 Samasthaans ruled by native rulers known variously as Maharajas, Maharanas, Rajas, Ranas, Raos, Nawabs, Nizam, and other miscellaneous titles. Some were very large, drawing very large revenues. Some were very small. The States were classified into A.B,C. etc., categories. The categories depended upon the special rights, privileges, articles of protocol, and marks of respect like the gun-salute. Certain most privileged states had the right of issuing their own stamps and coinage.
Among the
princely states along with Kashmir, Hyderabad state is only other state which
minted its own currency.
Currency
note of Jammu & Kashmir State
Image
courtesy: Google images
The currency
of Hyderabad state.
Currency
situation of Hyderabad State had become serious during World War I. It was unable
to meet money demands of the market due to the shortage of silver.
Consequently, the Hyderabad rupee could not maintain the rate of its exchange.
Hyderabad Government then sought the help of the Government of India to obtain
the supply of silver. The silver position of India Government itself was far
from established. It was not in a position to oblige the Hyderabad Government.
So, in 1917, it suggested to Hyderabad Government to improve the situation by
issuing paper money.
