History and Evolution of the Indian Rupee.
India is one of South Asia’s second-most- populated country and its currency is the rupee. The earliest issuers of coins were ancient Indians, together with Lydian’s and Chinese. Puranas are the first coins in India which were punch-marked. During the 6th century, the Mahajanapadas of ancient India minted the Pana or Karshapanas. These included Kuntala, Panchala, Gandhara, Kuru, Surasena, Saurashtra, and Panchala. Then the coins were punched with a royal standard by the Mauryas. Chanakya, who was the prime minister to Chandragupta Maurya of the Mauryan emperor, talks about the minting of coins. Kushan kings who were Indo-Greek came next and established the engraving portrait heads on coins, a Greek custom. For about eight centuries, this example was adhered to. The Kushan Empire’s extensive coinage also led to most of the tribes, kingdoms, and dynasties that started giving out their coins.
A large number of gold coins showing the Gupta kings doing some rituals were later produced by the Gupta Empire. The Turkish Sultans of Delhi during the 12th century used Islamic calligraphy on the coins replacing the Indian kings’ royal design. Delhi tried to also regulate the monetary system by introducing coins that had different values. From 1526 AD, during the beginning of the Mughal empire, it was characterized by a consolidated and unified monetary system that was meant for the whole empire. After concurring Humayun, Sher Shah Suri began a new military and civic administration. He supplied one silver coin which weighed 178 g and was known as the rupiya and was split into 40 pieces of copper, also known as paisa.
During the 1600s, the British East India Company began operations in India, at the time the silver of Sher Shah Rupiya had been established as the standard currency that was popular in the country. Even though they tried several times to bring in India the sterling pound, the rupaya became more popular, and it was even exported to British colonies as currency. In 1717 AD, the British were allowed to coin the money of Mughai at the Bombay Mint. The British established the first paper money in India with the General Bank in Bengal, the Bengal Bank, and the Hindostan Bank. The rupee was made the official colonial Indian currency by the British after the revolt in 1857, with King George VI head being used in the note replacing the banknotes and coins native design. Coins and banknotes with the Victoria portrait were issued in 1862 to honor Queen Victoria, and afterward, many emperors did the same. The notes belonging to this series were torn into two halve for security purposes, one half was posted, and after confirming the receipt, the remaining half was also sent.
The Indian Reserve bank was established formally in1935 and was given the mandate to supply the Indian government with notes. Ten thousand notes were printed by the bank, this being the highest note denomination in history to ever be printed in the bank, which were demonetized later after independence. In 1947 after India gained independence, India’s monetary system was not changed for some time, with 64 pice making 1 rupee. After independence, the first note India printed as 1 rupee.
The 1955 amendment act that was enforced on 1st April 1957 launched the decimal series. Instead of 64 pice or 16 annas, 100 paisa constituted 1 rupee. Later on in 1996,
prominent new features for additional security such as latent images, intaglio features for people with visual impairment, windowed security threats, and changed watermarks made the “Mahatma Gandhi” series. In 2010, India acknowledged its role in organizing the Commonwealth Games with 2 and 5 rupee coins as memorials.
History and Evolution of Bahrain Dinar (BHD)
Bahrain Dinar is Bahrain’s official currency. Bahrain is an island nation located near Saudi Arabia in the Arabian Gulf. Before 1965, for currency
Bahrain used the Persian Gulf rupee. After 1965 one dinar replaced the Persian Gulf rupee where one dinar was converted to ten rupees. In 1973 banknotes were supplied by the Bahrain Currency Board, and also this became the Bahrain Monetary Agency responsibility.
The dinar maintained its currency value at a fixed exchange rate of 0.376 dinars for $1 in 1980. The BHD notes are in denominations of ten, twenty-five, fifty, one hundred, and five-hundred dinar. There are also coins with values such as one, five, ten, twenty, and twenty fuloos. The Central Bank of Bahrain manages the currency. At the beginning of 2016, BHD began circulating notes with more security features and raised lines to cater to the visually impaired. In 2008 the Central Bank of Bahrain introduced a group of new banknotes. The latest issue acknowledged Bahrain’s bright future and also contemplate upon its past legacy.
Banking system in Bahrain.
The banks in Bahrain are pushing to modify the banking sector into a fintech leader. This initiative is expected to go together with proactively reforming and adopting regulations for new segments such as cryptocurrency, crowdfunding, and open banking. The Central Bank of Bahrain (CBB) that aims to become a regional center for sharia-compliant and conventional fintech by reducing the operation costs, attracting more foreign investment, financial inclusion improvement, and boosting efficiency.
A regulatory sandbox was launched by the CBB in 2017, giving an opportunity to international and local fintech companies to test hypotheses and new ideas. The sandbox provides adequate time to carry out approved testing of new fintech platform and services. Admission criteria into the sandbox focuses on certain crucial indicators for instance customer benefit, technical testing customer benefit and innovation. Several banks have been allowed to take part in the initiative, tested solutions as reported by CBB include platforms for online banking, systems of payment services and digital banks.
Open banking is one of the most notable fintech solutions to materialize from the CBB sandbox and has been embraced by NBB and other banks and more are expected to adopt it in the future. Almoayed has been working with Token.io a technology company was issued with an open banking licence. The bank then launched an application programme of open banking which connects 11 different banks to one platform. In 2017 september , Bahrain and the region were allowed to raise funds using licensed crowdfunding platforms under strict regulation that the companies have to be CBB-licensed. CBB regulation dictates that when dealing with a foreign SME, operators of the crowdfunding platform must publise and make known cross-border jurisdictional risks that exist for lenders. Platforms are required to follow all regulations of the CBB concerning consumer protection, reducing the financing of terrorist and anti-money laundering. In addition, the growth among innovative and non-traditional lenders could assist reduce challenges in credit access.
Banking system in india.
In the past few years, the Reserve Bank has worked towards improving the financial system efficiency by making sure that there are effective, secure and safe settlement and payment methods. The Reserve Bank has also greatly influenced the promotion of system modernization and functionality as an ongoing progress. The unifying of payment systems that are already existing focuses on clearing of cheques using computers, expanding Electronic Fund Transfer and Electronic Clearing Services reach. Automated banking machine (ABM) or automated teller machine (ATM)is a telecommunication device that is computerized to offer a financial institution’s client access to monetary transactions in public without being in need of bank teller, human clerk or cashier. The clients are able to withdraw currencies different from what the bank is denominated in, the money is converted using a wholesale exchange rate. As ATMs offer good exchange rates for foreigners, they are largely used for this reason.
A debit card is a plastic which offers an alternative method of payment other than cash when buying things. Debit card use has become more popular in most countries overtaking cash transactions and the cheque in terms of volume. Credit and debit cards are both used for internet and telephone purchases but it differs from debit cards in that the money is transferred from the bank account of the owner instead of having the owner on a later day repay the money used. On the other hand, a credit card enables its owner to make purchases of services and goods where the owner promises to pay the money later. The consumer is given a line of credit to the card user where the user can borrow money to make purchases.
The Indians are among the earliest people to issue coins. The Indian rupee currency is has undergone numerous changes from being punch marked with royal standard to engraving portrait heads on coins which was a Greek custom. Later the coins were produced using gold, silver, copper and tin which had different values in an attempt to try and regulate the monetary system. The monetary system was unified and consolidated to be used by the whole empire. The Indian rupee was later made the official colonial Indian currency by the British after the 1857 revolt and the first note was printed. The Reserve bank was established in 1935 and mandated to supply the Indian governments with notes. In 1996 the notes were added new features which were for added security. On the other hand the Bahrain Dinar, bahrain’s currency has not changed much. After 1965 the dinar replaced the Persian gulf rupee which was used initially. In 1973, bank notes were supplied by the Bahrain Currency Board and also this became the Bahrain Monetary Agency responsibility. At the beginning of 2006, BHD began circulating notes with additional security features. In 2008 new notes were introduced which acknowledged bahrains bright future and contemplated upon its legacy.
The banking system in Bahrain has had major technological advancements since the introduction of fintech. Bahrain also has a regulatory sandbox where fintech companies have a space to carry out their experiments. After the testing the solutions the banks are allowed to use the tested solution as reported by the CBB. Open banking is one of the tested solutions where different banks of a customer are connected into one platform. Bahrain is also allowed to raise funds using licensed crowdfunding platforms under strict regulations of sharia compliance and that companies should have CBB-licensing. Is Compared to the Bahrain banking system the technological advancements in the Indian banks is still behind. However indian banks have also made technological advancements by introducing the use of ATMs which allows clients to access their funds in public without needing human clerk,, bank teller or cashier. Introduction of debit and credit cards which offers an alternative method of payment other than cash when making purchases. Credit and debit cards are both used for internet and telephone purchases. In debit cards the money is transferred from the owners bank account directly while in debit card the owner is allowed to make purchases with the promise to pay the money later.