was a separate currency of Hyderabad State
, different from the Indian rupee
. Like the Indian rupee, it was divided into 16 annas, each of 12 pai. Coins were issued in copper (later bronze) for denominations of 1 and 2 pai and ½ anna, in cupro-nickel (later bronze) for 1 anna and in silver for 2, 4 and 8 annas and 1 rupee.
The Government of Hyderabad made several efforts to organise private bankers to set up a banking company which could issue paper money. The British, however resisted the attempts of Indian princely states
to issue paper currency. The acute shortage of silver during the First World War
and the contributions of Hyderabad to the British war effort led them to accept, in 1918, paper currency in denominations of Rs.10/- and Rs.100/- issued under the Hyderabad Currency Act.
The currency was designated the Osmania Sicca
(OS). One and five rupee notes were subsequently issued in 1919 and one thousand rupee notes were issued in 1926. After the setting up of the India Currency Notes Press at Nasik
, Hyderabad notes came to be printed there.
In 1942, the Government of Hyderabad established the Hyderabad State Bank
, with the responsibility, inter alia
, of managing the OS. Hyderabad continued to mint its own coins until 1948, when India liberated the state from the Nizam's rule.
In 1950, the Indian rupee was introduced alongside the local currency, with the relationship of 7 Hyderabad rupees = 6 Indian rupees being used. In 1951, the Hyderabad rupee... Read More