Understanding the Monetary System of British India

During British rule, the Rupee was subdivided into 16 Annas. Each Anna was subdivided into 4 pices. So, one Rupee was equal to 64 pice (paisa) and 192 pies as 1 Pice was equal to 3 pies.

The below chart will help you understand the monetary system of British India. The same system was continued post-independence until decimalized in 1957.

Monetary System
Pies	Pice	Anna	Rupee
1	1/3	1/12	1/192
3	1	1/4	1/64
6	2	1/2	1/32
12	4	1	1/16
24	8	2	1/8
48	16	4	1/4
96	32	8	1/2
192	64	16	1
15 Rupees = 1 Mohur

Although the directors of the British East India Company in 1806 had given their approval for the introduction of a uniform currency in India, the era of such currency began only in 1835 through a formal Act.

The period was known to be 'Silver Standard' because Silver Rupee coins of 180 grains troy in terms of weight, 11/12ths fine in terms of purity, were declared the sole legal tender throughout the British India. 

Mints were opened to the public for free coinage of the metal and India was thus put on a monometallic silver standard. Though broader preference was for silver coins, the directors of the East India Company were not opposed to circulation of gold coins as such. The Act of 1835 permitted the minting of gold coins of the same weight and fineness as the silver rupee. But in terms of valuation, it was valued at 15 silver coins for 1 gold coin.

Following the First World War and the resulting global economic depression, silver content in British coins was reduced to 50% due to cost and supply shortages. The period was short-lived (debased silver coins being minted from 1920–1946) and silver coins were eliminated from circulating currency altogether in 1947.