The Cash Coupons of Princely States

[Pictures of assorted Cash Coupons]

During the World War II a great scarcity of precious metals led to a shortfall in the circulating sphere. Most of the princely states which were using British Indian coins could not sustain the demand for coins. As an outcome, they issued what are known as "Cash Coupons", which form an interesting part of Indian Paper Currency.

Most of the states who issues these coupons lay in Western India, especially Gujarat, Rajasthan and Malwa. Some of them were of an insignificant size, less than 100 sq. miles in area. Though some states sought the prior permission of the Government of India to issue Cash Coupons, the persistent negation of the authorities led many others to issue the coupons unofficially and satiate their needs. Most of them are therefore of very low denominations.

The cash Coupons can be grouped into certain aggregates depending on their nature, issuing authority, mode of payment, etc. Some Cash Coupons are simply the impressions of the fiscal or revenue stamps on a cardboard and issued serially. Some others are issued through the State's treasury and bear the signature of the treasurer or accountant. A few coupons were issued through certain local banks which had royal patronage. Some others do not fall in any of these categories and were issued simply as tickets with or without an authorising signature. As examples, coupons of Rajkot and Nawanagar can be included in the first group, Indargarh and Bikaner in the second group and Dhar, Morvi and Palitana in the third group. The fourth group can be exemplified by Junagarh, Mangrol and Dhrol.

The Cash Coupons, by their nature, enjoyed a limited circulation. There were restrictions on their encashment. Soiled, torn or stained coupons were not encashed. While encashing, many states imposed a condition that only such quantity of coupons could be encashed which would be equivalent in value at least to a full Rupee.