History of Printing Money in Telangana
Nizam's Currency · The SS Egypt Shipwreck · Hyderabad Mint · The Shift from England to Nashik
The history of printing money in Telangana is deeply intertwined with the legacy of the Nizams of Hyderabad. From the establishment of the Royal Mint in 1903 to the introduction of paper currency during World War I, the princely state of Hyderabad had a unique monetary system that evolved independently of British India. The currency was known as the "Halli Sikka" (HS) or "Osmania Sicca", and it remained in circulation until 1955, a decade after the end of Nizam rule.
One of the most dramatic episodes in this history was the sinking of the SS Egypt on May 20, 1922, which carried ₹51 lakh worth of Nizam's currency from England to India. The shipwreck, the subsequent salvage operation a decade later, and the legal battles that followed forced the Nizam to shift currency printing from London to Nashik — a decision that proved providential with the outbreak of World War II.
This article traces the complete history of money printing in Hyderabad State — from the minting of coins at the Saifabad Mint (established 1903) to the introduction of paper currency under the Hyderabad Currency Act (1918), the SS Egypt disaster, and the eventual integration of Hyderabad currency into the Indian system in 1955.
Until the introduction of paper currency in 1918, only coins were in circulation in Hyderabad State. The highest denomination was Re 1, and all coins were struck in silver, worth their weight in metal. The Nizam's government operated a mint that produced coins, medals, badges, and other memorabilia.
Establishment of the Saifabad Mint (1903): In 1903, the process of minting in Hyderabad State was overhauled on the lines of European mints. The facility was moved to Saifabad and began operations on July 13, 1903 with the latest machinery. The mint was established in a setup similar to that of industrial European factories.
Until 1895, the mint manufactured only handmade coins. After 1903, with the installation of modern machinery, coin production became more efficient. The mint produced not only coins but also traffic signals, medals, badges, and other memorabilia — a unique feature not seen in other mints across India.
The European-style royal mint building near Saifabad still stands today, though it is forlorn. For decades, what lay inside remained a mystery to the people of Hyderabad. In 2021, the Security Printing and Minting Corporation of India Limited (SPMCIL) decided to open the Nizam-era Mint compound to the public.
Though Hyderabad State was annexed to the Indian Union in 1948, the minting of coins in the name of the Nizam continued until the 1950s. In 1950, post the Federal Financial Integration, the mint was taken over by the Government of India. From 1950 to 1997, the government mint operated from the Saifabad location. In 1997, it was shifted to its present location at Cherlapally.
Heritage activists have long demanded that the old mint building in Saifabad be converted into a numismatics and royal mint museum with access to the common man. Most of the original equipment, however, was consigned to a scrapyard. A few moulds, dies, casts, and rare coins and currency of the Nizam are preserved in a small museum at the Cherlapally mint.
Thirty-six princely states in the northwestern part of the subcontinent were given permission by the British Government to issue paper tokens in 1917 instead of metallic coins. The only princely state in the south-central part of India to have been allowed to do so was Hyderabad.
The Hyderabad Currency Act (1917–1918): The Act received the approval of the 7th Nizam, Mir Osman Ali Khan, on June 4, 1918. This was the first time that paper currency was introduced in the princely state of Hyderabad.
Known as "Rupya Sicca Osmania" or "Osmania Sicca": The currency, with denominations of ₹1, ₹5, ₹10, ₹100, and ₹1000, was printed at Waterlow & Sons Ltd, London, and then shipped to Hyderabad. This arrangement continued until 1936.
Security Measures: The Nizam ensured that the money printed in England did not fall into wrong hands before the bundles of currency arrived in Hyderabad. The notes would carry all the details except the mandatory signature of the finance member, without which the notes were invalid. The signature was printed in Hyderabad before formal release into the market.
1918: The Nizam first issued ₹10 and ₹100 notes. However, high-value notes did not get people's support.
1919: The Nizam later introduced ₹1 and ₹5 banknotes to address the public's reluctance to accept high-denomination currency.
1926: The ₹1000 banknote was issued for high-value transactions.
The Black ₹1 Note — First Demonetization in Indian History: The Re 1 note was turned down by people because it was black. Many considered black as inauspicious and refused to accept it. The Nizam was forced to withdraw the black note within a year of its introduction. This was thus the first ever demonetization of a banknote in Indian history.
The Voyage: On May 19, 1922, SS Egypt owned by The Peninsular and Oriental Steam Navigation Company, England, left Tilbury docks in London for Bombay (Mumbai). It had 44 passengers and 294 crew members, besides a large shipment of gold and silver and a consignment of Hyderabad currency.
The Consignment: The ship was carrying a consignment of currency notes worth HS ₹51,25,000 that had been shipped by Messrs. Waterlow & Sons to the Hyderabad Government. The particulars of the notes were as follows:
- 40,000 pieces of HS ₹100 (PS 60,001 to PS 1,00,000)
- 1,00,000 pieces of HS ₹10 (AI 0,00,001 to AI 1,00,000)
- 25,000 pieces of HS ₹5 (LQ 50,001 to LQ 75,000)
- Total: 1,65,000 pieces of currency notes
The face value of the consignment was ₹51,25,000.
It was a practice for security reasons that the notes were dispatched unsigned. On arrival at Hyderabad, the Honourable Finance Minister signed the same. As such, these notes, which were unsigned, were not useful as currency.
Waterlow had insured the consignment to Hyderabad for only £2,000, which took care of the cost of the paper printing and packaging. After the mishap, the insurance company settled the claim for the printed value of £2,000.
Since the currency notes were unsigned, they did not carry value legally. For this reason, they were insured for their printed value only, not their face value.
Imagine a note's condition if it was buried 400 feet deep in the English Channel amid high pressure for over a decade. However, what happened to Nizam's currency defied logic — some notes were recovered in recognizable condition.
Legal Tussle: The treasure was salvaged a decade later in 1932, only to trigger a prolonged legal battle. Few of the notes salvaged from the seabed had made their way to Hyderabad, resulting in a spate of legal fights. The issue was closed 17 years after the notes were printed — entailing seven years of negotiation and litigation.
Numismatist Rezwan Razack's Collection: The Bengaluru-based numismatist and co-founder of the Prestige Group, Rezwan Razack, has in his collection a note with the autograph of all the members of the salvage team — a unique piece of history documenting this remarkable recovery.
Contract with Nashik Press: In 1938, the printing of new notes, with denominations of ₹5 to ₹1000, was entrusted to the Government of India Security Press, Nashik. This continued till 1936 for the London-printed notes, and then Nashik took over.
Replacement Stock: The Hyderabad government requested Waterlow to destroy the original notes and ordered a replacement stock from the printers, with the same series repeated, but in a slightly different type of font used in the serial number to indicate the difference. These were received and duly circulated, and the matter was regarded as closed.
World War II Proved the Decision Wise: The outbreak of World War II, shortly after the contract for future supplies was placed at the Nashik press, proved it was indeed a wise decision. Had the Nizam continued to rely on printing in England, the war would have disrupted the supply of currency to Hyderabad State.
Later, during World War II, notes were also printed at the Royal Mint as well as Central Press (Government Printing Press, Malakpet) in Hyderabad.
Though Hyderabad State was annexed to the Indian Union in September 1948, the Nizam's currency continued to be legal tender for several more years. The minting of coins in the name of the Nizam continued until the 1950s.
Ceased to be Legal Tender: After the princely state of Hyderabad was integrated into the Union of India, its currency ceased to be legal tender from April 1, 1955 onwards. This marked the end of the Osmania Sicca, which had been in circulation for nearly four decades.
Takeover of the Mint: In 1950, post the Federal Financial Integration, the mint was taken over by the Government of India. From 1950 to 1997, the government mint operated from the Saifabad location. In 1997, it was shifted to its present location at Cherlapally.
Rezwan Razack's Collection: Bengaluru-based numismatist Rezwan Razack, co-founder of the Prestige Group, has devoted 50 years to collecting and researching Indian paper money. In 2020, he opened the Museum of Indian Paper Money (popularly known as the 'Rupee Museum') on Brunton Road, Bengaluru. The International Bank Note Society (IBNS) recently inducted him into the 'Hall of Fame', making him the first Asian to receive this recognition.
Proposed Royal Mint Museum: Heritage activists demand that the old mint building in Saifabad be converted into a numismatics and royal mint museum of Hyderabad with access to the common man. The coinage and currency heritage of Hyderabad currently lies hidden within the four walls of the Government of India Mint at Cherlapally, not accessible to the public.
- First paper currency issued: 1918
- Printer (1918–1936): Waterlow & Sons Ltd, London
- Printer (1938 onwards): Government of India Security Press, Nashik
- SS Egypt consignment value: ₹51,25,000 (1922)
- Notes on SS Egypt: 1,65,000 pieces (40,000 x ₹100, 1,00,000 x ₹10, 25,000 x ₹5)
- Insurance value: Only £2,000 (cost of paper and printing)
- Years of legal battle: 7 years of negotiation and litigation; 17 years total to close the issue
- Year currency ceased: 1955 (April 1)
- Current location of mint: Cherlapally, Hyderabad (shifted 1997)
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