Logo Title
obverse
reverse
Joseph Kunnappally
Context
Year: 1939
Country: India Country flag
Ruler: George VI
Currency:
(1770—1947)
Demonetized: Yes
Material
Diameter: 23.5 mm
Weight: 5.83 g
Silver weight: 5.35 g
Shape: Round
Composition: 91.7% Silver
Magnetic: No
Technique: Milled
Alignment: Medal alignment
Obverse
OBVERSE ↑
flip
Reverse
REVERSE ↑
References
KM: #Click to copy to clipboard550
Numista: #23550
Value
Bullion value: $15.12

Obverse

Description:
George VI's mature left-facing portrait with short trefoils in the crown.
Inscription:
GEORGE VI KING EMPEROR
Translation:
GEORGE VI KING EMPEROR
Language: English
Engraver: Percy Metcalfe

Reverse

Description:
A circle encloses a date separating English and Persian text, surrounded by a wreath of roses, thistle, shamrock, and lotus flowers, all within a toothed border.
Inscription:
HALF

RUPEE

INDIA

1939

هشت آنہ
Translation:
HALF

RUPEE

INDIA

1939

Eight Annas
Languages: Persian, English

Edge

Reeded

Mintings

YearMint MarkMintageQualityCollection
1939
1939

Historical background

By 1939, the currency situation in British India was a managed system firmly under the control of the colonial government, designed to serve imperial economic and strategic interests. The rupee was not freely convertible but was linked to the British Pound Sterling through a "sterling exchange standard." The Reserve Bank of India (RBI), established in 1935, held the country's foreign exchange reserves predominantly in sterling in London. The rupee's value was effectively fixed at 1 shilling 6 pence (1s 6d), meaning India’s currency and credit system was intrinsically tied to Britain's financial fortunes.

This arrangement heavily favored British economic priorities, particularly the need to manage India's large sterling balances—accumulated through export surpluses and wartime expenditures—which were crucial for financing the UK's own deficits. The system ensured that India’s vast resources were readily available to support the metropolitan economy, especially with the outbreak of World War II in September 1939. Immediately upon the declaration of war, the colonial government passed the Defence of India Rules, imposing strict capital controls and formally pegging the rupee to sterling at 1s 6d, making all outward payments subject to government approval.

Consequently, India’s currency mechanism was primed to function as a critical financial pillar for the British war effort. The fixed exchange rate and controlled system facilitated the automatic financing of UK war purchases in India, leading to the massive accumulation of sterling credits (the "Sterling Balances") in London. This locked India's economic fate to Britain's wartime needs, creating a forced savings scenario that would fuel inflation and post-war economic debates about sovereignty and debt, while ensuring that Indian resources flowed seamlessly into the Allied campaign.

Series: 1939 India - British circulation coins

2 Annas obverse
2 Annas reverse
2 Annas
1939-1940
2 Annas obverse
2 Annas reverse
2 Annas
1939-1941
½ Rupee obverse
½ Rupee reverse
½ Rupee
1939
1 Rupee obverse
1 Rupee reverse
1 Rupee
1939-1943
Somewhat Rare