Rupee is the name of  Indian coin and currency. It was derived from a Sanskrit language word 'Rupya'. Rupya literally means the 'wrought silver' used as the coins of trade or currency during  500-400 BCE (Before Common Era).

Arabian, Afghan and Turkish  invaders of turkish and mongol descent came to India following the collapse of Gupta empire. They slowly established themselves in northern India (600-1500 CE). Out of the later invaders grew Moghul  empire (1526-1857). Silver Rupee coin made a standard currency by Sher Shah in 1540 CE.  Sher Shah issued gold Mohurs and copper paisas also. Moghul emperors issued some of the most exquisite gold and silver coins minted in India.

Among the european colonial powers that came during the decline of Moghul empire, Portuguese were the first to open a mint in Goa in 1510 and issue coins. In 1775 CE., they adopted the word Rupia for their coins. The English were given permission to open a mint in Bombay in 1717 CE. and the French in 1736 at Arcot. These mints issued Moghul rupees and other coins.

Many small independent  princely states emerged as the Moghul empire was collapsing and  issued their own coins. The East India Company coins had three distinct periods. Coins from  1613-1717 were minted at the Moghul mints or issued illicit coins. During 1717-65, it gained rights from Moghul empire to mint Moghul rupees  at their own mints at Bombay (1717), Madras (1742) and  Calcutta (1758).¹  In 1765, East India Company acquired administrative powers  and divided India into three Presidencies.  It issued coins in the name of Moghul emperors. Each Presidency had its coinage of Rupees and Mohurs. British parliament passed an act in 1835 to make the uniform coinage. First uniform coins were minted with British King William IV effigy on the obverse side. Next hundred years, indian coins had an effigy of British Monarch on them.

After independence,  British Monarch's effigy on Indian Rupee was replaced by a  "Lion capital" from the 'Pillar of Laws' built at Saranath by Mauryan King Ashoka in 250 B.C.E. Paradoxically history of indian coinage starts repeat itself with a Mauryan symbol on it again after 2500 years of its beginnings. India adopted decimal system of 100 Paise per one Rupee in 1957.