Paisa
The paisa (also spelled paise, poisha, or baisa in some contexts) is a monetary subunit used in several South Asian countries, equal to one hundredth (1/100) of the main currency unit. In India, Pakistan, and Nepal, one paisa equals 1/100 of a rupee; in Bangladesh, it equals 1/100 of a taka.[1][2][3] The term originates from Hindi/Urdu words meaning "money" or "wealth" and is sometimes used colloquially to refer to money in general. Paisa coins are issued in denominations such as 1, 2, 5, 10, 25, and 50, though smaller denominations are increasingly rare in circulation due to inflation. Detailed historical development, etymology, and country-specific usage are covered in subsequent sections.Origins and Etymology
Etymology
The word "paisa" derives from the Sanskrit term padāṁśa, meaning "quarter part" or "basic unit," composed of pada ("foot," "quarter," or "base") and aṁśa ("part" or "share").[4] This term originally denoted a fractional division in ancient monetary or measurement systems. Over time, padāṁśa evolved through Sauraseni Prakrit as payaṃsa, transitioning into medieval Indo-Aryan languages and eventually yielding the modern Hindi and Urdu form paisā.[5] The term's influence extended beyond South Asia via trade and cultural exchange, appearing in Burmese as paiksan (or poik-san), a colloquial word for money or coin.[6] Similarly, through Indian Ocean commerce, it spread to East Africa, where Swahili adopted pesa to mean "money."[7] In colonial English records, the word underwent transliteration as "pice" or "pesa," with early mentions dating to the late 16th century. This spelling persisted in Anglo-Indian usage to refer to small copper denominations, reflecting phonetic adaptations in European documentation of South Asian currencies.[8]Historical Development
The earliest known use of paisa as a currency unit dates to the medieval period in western India, where silver coins referred to as "Gadhaiya Paise" were introduced by the Chaulukya dynasty (also known as the Solankis) during the 9th and 10th centuries CE. These coins, minted in regions encompassing present-day Gujarat and Rajasthan, were derivative of Indo-Sasanian styles and served as small-denomination silver pieces, typically valued at 1/16 or 1/32 of a larger unit such as the dramma or early rupee equivalents, facilitating local trade and transactions.[9][10] In the pre-decimalization era before the 1950s, the paisa functioned as a subunit of the rupee across much of the Indian subcontinent, particularly under Mughal and British rule. During the Mughal Empire (16th–19th centuries), the paisa was standardized as 1/64 of a rupee, aligning with the broader system where 1 rupee equaled 16 annas, 1 anna equaled 4 pice (or paisa in some regional usages), and 1 pice equaled 3 pies. This structure persisted into British India, where the paisa retained its 1/64 rupee valuation amid variations in princely states, supporting everyday commerce while larger silver rupees handled major exchanges.[11][12] The partition of British India in 1947 profoundly disrupted shared currency systems, as the subcontinent's unified monetary framework was divided between the newly independent dominions of India and Pakistan. Under the partition agreement, Pakistan was allocated 17.5% of British India's assets and liabilities, including cash reserves, but initial payments were delayed due to conflicts over princely states like Kashmir; consequently, the Reserve Bank of India continued printing notes for Pakistan until September 1948, when Pakistan issued its own currency, initially mirroring the Indian rupee's structure of 16 annas to the rupee. This transitional overlap ensured economic continuity amid mass migrations and asset divisions but highlighted the rupee's role as a common legacy.[13][12] Decimalization reforms in the post-independence period modernized the paisa across South Asia. In India, the Decimal Coinage Act of 1955 took effect on April 1, 1957, redefining the rupee as 100 "naya paisa" (new paisa), phasing out annas and pice to simplify calculations and align with international standards; the "naya" prefix was dropped in 1964. Pakistan followed suit on January 1, 1961, subdividing the rupee into 100 paisa through legislative changes, issuing initial coins in bronze and cupro-nickel to replace the 64 pice system. Similar transitions occurred in other nations, such as Bangladesh (adopting the taka with 100 poisha in 1972 post-independence) and Nepal (formalizing paisa as 1/100 rupee in the 1960s amid broader monetary reforms), marking the paisa's evolution into a standardized decimal subunit.[12][14]Usage in South Asian Currencies
In India
Following India's independence, the paisa was established as the subunit of the Indian rupee, equivalent to 1/100th of the rupee, as part of the decimalization process implemented on April 1, 1957, under the Indian Coinage Act of 1955 (as amended). This reform replaced the pre-independence system of 16 annas per rupee with a metric-based structure to simplify transactions and align with international standards. Initial coinage included denominations of 1, 2, 3, 5, 10, 20, 25, and 50 paise, minted primarily from bronze for the 1 paisa coin, copper-nickel for higher values like 2, 5, and 10 paise, and nickel for select issues, reflecting efforts to balance durability and cost amid post-war economic constraints. These "naya paisa" coins (meaning "new paisa") were produced at government mints in Mumbai, Kolkata, and Hyderabad to facilitate everyday commerce.[15][12] Over time, economic inflation rendered smaller denominations impractical, leading to phased withdrawals. Minting of the 1 paisa coin ceased in 1972, the 2 paisa in 1984, and the 5 paisa in 1994, primarily due to their minimal purchasing power and rising production costs relative to metal values. In 2011, the Government of India demonetized all coins of 25 paise and below (i.e., 1 through 25 paise), effective June 30, ceasing their legal tender status to streamline circulation and reduce handling expenses for banks and retailers. The 50 paise coin retains legal tender status up to a sum of Rs 10 as of 2025, though no new minting has occurred since 2016, with existing stocks sufficient for residual needs and their value often exchanged at banks. Stainless steel compositions were adopted for the 50 paise denomination starting in 1988 to enhance longevity and cut costs.[16][17] In practical application, the paisa continues to denote fractional amounts below one rupee in retail pricing, such as 75 paise for small items or transport fares, though physical coins are seldom used due to scarcity and preference for digital payments. Under the Goods and Services Tax (GST) regime since 2017, total tax liabilities are rounded to the nearest whole rupee: amounts with 50 paise or more are rounded up, while less than 50 paise are rounded down, minimizing the need for sub-rupee transactions in invoicing. This rounding rule, specified in Section 170 of the CGST Act, ensures precision in tax computation while adapting to the diminished role of low-value coins in daily economic activities.[18]In Pakistan
Following Pakistan's independence in 1947, the State Bank of Pakistan issued the first rupee notes and coins in 1948, initially subdivided into 16 annas of 4 pice each under the traditional system.[14] Decimalization in January 1961 reformed the currency to align with global standards, redefining the rupee as 100 paisa (with pice renamed paisa) and introducing corresponding coins.[14] The initial post-decimalization coins comprised 1, 5, and 10 paisa denominations, minted in bronze for the 1 and 5 paisa (weighing 1.4 g and 1.7 g respectively) and cupronickel for the 10 paisa (3.1 g). In 1963, 25 paisa (4.5 g, cupronickel) and 50 paisa (5 g, cupronickel) coins followed, while 1 paisa (bronze, 1.4 g) and 2 paisa (bronze, 0.73 g) were added in 1964. These materials—bronze for low values and cupronickel for higher ones—reflected cost-effective production for everyday transactions. To address rising metal costs, reforms in the late 1960s and 1970s shifted low-denomination coins to lighter alloys; for example, 1 paisa coins transitioned to aluminum (0.6 g) from 1967 through 1973, with similar changes for 2 and 5 paisa by the mid-1970s. Minting of these smaller coins declined sharply in the 1990s amid inflation eroding their value, ceasing entirely by 1996 as production expenses surpassed face values.[19] All paisa-denominated coins (1, 2, 5, 10, 25, and 50) lost legal tender status on October 1, 2014, though higher rupee coins continue in circulation.[20] The paisa unit persists in financial contexts, particularly exchange rate reporting by the State Bank of Pakistan, where daily rupee movements against foreign currencies are tracked in paisa increments—for instance, the exchange rate is published to two decimal places reflecting paisa precision.In Bangladesh and Nepal
In Bangladesh, the poisha serves as the subunit of the taka, with 100 poisha equaling one taka, a decimal system introduced following the country's independence in 1971 and formalized with the issuance of the first taka notes and coins on March 4, 1972.[21] Coins in denominations of 1, 5, 10, 25, and 50 poisha were minted starting in 1973, primarily using aluminium for the 1 and 5 poisha pieces (weighing 0.51g and 1.4g respectively) and brass for the 25 and 50 poisha (2.5g and 5g).[21] Minting of the 1 and 5 poisha coins continued intermittently through the 2000s and into 2011, while higher poisha denominations ceased production around 2004; by 2013, all poisha coins were no longer being minted, though they remain legal tender.[22] Due to inflation and the rise of mobile financial services, physical poisha coins see minimal circulation by 2025, with transactions increasingly handled through digital platforms amid Bangladesh Bank's push for digital banking licenses to 12 applicants in late 2025.[23] In Nepal, the paisa has functioned as the centesimal subunit of the Nepalese rupee since the currency's decimalization in the mid-20th century, with the modern rupee system established under the Nepal Rastra Bank in 1956 and coins issued from the 1950s onward.[24] Denominations include copper-nickel coins for 1, 2, 5, 10, 25, and 50 paisa, introduced progressively from the 1950s to 1970s, such as the 50 paisa piece (KM#777) minted in 1956 for King Mahendra's coronation.[25] As of 2025, the Nepal Rastra Bank continues minting 1 and 5 paisa coins in limited quantities, primarily aluminium-bronze compositions, to support small-scale transactions in rural areas and sectors like tourism, where low-value exchanges remain relevant despite the rupee's overall reliance on remittances contributing over 25% to GDP.[26] Both Bangladesh and Nepal adopted their paisa/poisha systems influenced by the Indian rupee's decimal framework post-independence, adapting to local economic pressures like inflation while adhering to ISO 4217 standards: BDT for the taka with two decimal places (poisha) and NPR for the rupee with two decimal places (paisa).[27] This shared structure facilitates cross-border trade and remittances in the region, though practical use of sub-unit coins has diminished in favor of higher denominations and electronic payments.[28]Linguistic and Cultural Aspects
As a Term for Money
In South Asian vernaculars, particularly Hindi, Punjabi, Urdu, and Bengali, "paisa" functions as a colloquial synonym for money, cash, or wealth, detached from its precise numerical value as a currency subunit. This generic usage reflects everyday economic realities, where it denotes financial resources in broad terms, such as in transactions or discussions of prosperity. For example, in Hindi and Urdu, the idiom paisa phenk, tamasha dekho—literally "throw money, watch the spectacle"—illustrates how spending lavishly can attract attention or entertainment, a phrase rooted in popular cultural expressions of consumerism and social display.[29] Similarly, the widespread Hindi-Urdu expression paisa vasool means "money's worth" or value for money, often applied to evaluate the satisfaction derived from purchases, services, or experiences like attending a film or event.[30] This slang permeates 20th- and 21st-century cultural depictions, symbolizing both economic aspiration and the pitfalls of greed in Bollywood cinema, literature, and proverbs. In Hindi films, characters frequently reference "paisa" to highlight themes of rags-to-riches journeys or moral dilemmas around wealth accumulation, reinforcing its role as a metaphor for ambition in post-independence Indian narratives. Literary works and oral traditions further embed it in proverbs that convey practical wisdom about finances; a notable example from Pakistani folklore is bigra beta ya khota paisa bhi kabhi na kabhi kaam aa jata hai ("even a spoiled son or a counterfeit coin can prove useful someday"), underscoring resilience in flawed assets, including monetary ones. Such portrayals, spanning Urdu poetry collections on platforms like Rekhta—where "paisa" appears in ghazals evoking fortune and desire—illustrate its enduring symbolic weight in expressing societal values around money.[31] Regional nuances adapt "paisa" to local contexts, emphasizing its flexibility as slang. In rural Pakistan, it commonly signifies small change or petty cash used in daily bartering and informal exchanges, aligning with the agrarian economy's reliance on minor denominations for survival. In urban Bangladesh, particularly among Bengali speakers in cities like Dhaka, "paisa" (or poysha) often implies modest or irregular earnings from gig work, street vending, or low-wage labor, capturing the hustle of informal urban livelihoods where every small amount counts toward sustenance. These variations highlight how the term transcends borders, fostering a shared linguistic shorthand for financial precarity and opportunity across South Asia.[32]Influence on Other Languages
The term "paisa" spread to East Africa via historical Indian Ocean trade routes, where Indian merchants introduced coins and terminology that influenced local languages and currencies. In Swahili, the word evolved into "pesa," meaning "money," derived directly from the Indian "pice" or "paisa" as the common unit of exchange during the colonial era.[33][34] This linguistic borrowing reflects the extensive commerce between South Asia and East African coastal regions, where Indian silver rupees and smaller denominations circulated widely from the 19th century onward.[7] Early colonial currencies in the region explicitly incorporated the term; for instance, the German East African rupie, introduced in the late 19th century, was subdivided into 64 pesa, directly equivalent to the Indian pice or paisa.[35] British East African protectorates minted pice coins from 1897 to 1899; these were demonetized in 1905 with the introduction of cents as subdivisions of the rupee. In 1920, the East African shilling replaced the rupee, though the word "pesa" persisted in everyday usage for money across Kenya, Tanzania, and Uganda. A prominent modern example is Kenya's M-Pesa mobile money service, launched in 2007, whose name combines "M" for mobile with "pesa," underscoring the term's enduring cultural and economic relevance in East Africa.[36] Through Portuguese colonial networks, "paisa" influenced monetary terminology in territories like Goa in Portuguese India, where the rupia-based system included subdivisions equivalent to the paisa—such as the 1/4 tanga, valued at 1/64 of a rupia and aligned with the Indian unit.[37] This integration occurred due to the shared use of Indian coinage alongside Portuguese standards from the 16th to mid-20th centuries, blending South Asian and Iberian systems in regions like Goa and extending to Portuguese Timor (modern East Timor), where similar small-denomination terms circulated informally.[38] Beyond these areas, the Indian diaspora has carried "paisa" to other regions, notably Fiji, where indentured laborers from India in the late 19th and early 20th centuries established communities speaking Fiji Hindi. In this creole language, "paisa" directly translates to "money," retaining its original connotation in informal and cultural contexts among Indo-Fijians.[39][40]Modern Denominations and Status
Coin Specifications
Paisa coins, as subunits of South Asian currencies, vary in physical specifications by country and denomination, reflecting local minting practices and material choices for durability and cost-efficiency. In India, the 50 paise coin, equivalent to half a rupee, is typically composed of ferritic stainless steel with a weight of 3.79 grams and a diameter of 22 millimeters.[41][42] This material provides corrosion resistance suitable for circulation. In Pakistan, the 5 paisa coin, a subunit of the rupee, is made from aluminum, weighing approximately 1 gram with a side length of 19.12 millimeters and a square shape with rounded corners for distinctive handling.[14] Bangladesh's 5 poisha coin, part of the taka system, uses an aluminum-magnesium alloy (97.2% aluminum, 2.8% magnesium), weighing 1.4 grams and measuring 22 millimeters across with plain edges. Nepal's 25 paisa coin, a quarter rupee subunit, is produced in aluminum, with a weight of 1.5 grams and a 20-millimeter diameter, emphasizing lightweight construction for low-value transactions.[43] Design elements across these coins commonly incorporate national emblems to symbolize sovereignty and cultural identity. For instance, Indian paisa coins feature the Ashoka Chakra, a wheel emblem from the Lion Capital at Sarnath, encircled by inscriptions in Hindi and English denoting the denomination and year of minting.[12] Pakistani and Bangladeshi variants often display crescents, stars, or water lilies (Shapla) as national motifs, while Nepalese coins include royal crowns or grain ears flanking the value. Edge types vary for security and tactile identification, including plain edges on Indian stainless steel issues, plain edges (with rounded corners) on Pakistani types, and plain edges on Bangladeshi and Nepalese coins.[44] Production adheres to international standards for precision and quality. Indian coins, including paisa denominations, are minted at facilities such as the Mumbai Mint, which operates under ISO 9001:2015 and ISO 14001:2004 certifications to ensure consistent weight, purity, and dimensional accuracy.[45] Similar standards apply in Pakistan's Lahore Mint and Bangladesh's facilities, maintaining tolerances for weight and composition to facilitate cross-border recognition within the region.[14]| Country | Denomination | Material | Weight (g) | Diameter (mm) | Edge Type |
|---|---|---|---|---|---|
| India | 50 Paise | Ferritic Stainless Steel | 3.79 | 22 | Plain |
| Pakistan | 5 Paisa | Aluminum | 1.0 | 19.12 | Plain (rounded corners) |
| Bangladesh | 5 Poisha | Aluminum-Magnesium | 1.4 | 22 | Plain |
| Nepal | 25 Paisa | Aluminum | 1.5 | 20 | Plain |