Tughlaq had also implemented note ban: Sinha

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Former finance minister and BJP leader Yashwant Sinha taking a dig at Prime Minister Narendra Modi over demonetisation, said even the 14th century Delhi sultan, Muhammad bin Tughlaq, had implemented note ban 700 years ago.

Criticising Modi for the controversial move, Sinha at a function here claimed that demonetisation had hit the economy to the tune of Rs 3.75 lakh crore.

How demonetization hit Indian Economy?

Citing a report by the Centre for Monitoring Indian Economy, the veteran BJP leader claimed that the direct cost of demonetisation would come around Rs 1,28,000 crore.

“The direct cost of note ban, such as printing new notes, would come around Rs 1,28,000 crore. If we consider that the economy has slowed down by 1.5 per cent due to note ban, although I believe it is more than that, then it has made a dent of Rs 2,25,000 crore more to the economy.

“Now add that direct cost of Rs 1,28,000 crore with this Rs 2,25,000 crore. In total, our economy has suffered a loss of around Rs 3.75 lakh crore directly

Muhammad Bin Tughlaq 

One of the most interesting personalities of medieval India, he ruled over the northern parts of the Indian subcontinent and the Deccan from 1324 to 1351 AD.

A learned man with an open mind and a unique streak of intellectual creativity, Tughlaq was well versed in poetry, astronomy, religion and philosophy.


Tughlaq took some very bold and strong measures to reform the administration during his chequered reign as the Sultan of Delhi. In 1329 AD, he shifted his capital from Delhi to the more centrally located Devagiri in Maharashtra, which was renamed Daulatabad.

When famine-like conditions and frequent revolts began straining his coffers, Tughlaq found it difficult to maintain the supply of gold (dinars) and silver (adlis) coins on a large scale. So, he introduced a token currency system and minted vast quantities of new copper and brass coins (tankas) that could be exchanged for fixed amounts of gold and silver.


It proved to be lucrative to forgers who began issuing a large number of fake coins. Loopholes like a simple design (the coins just had some inscriptions) and no royal seals made the task easier for forgers.

Every house became a mint for copper coins while gold and silver coins were zealously hoarded. Soon, the market was awash with fake coins.

  • In 1735 AD, Nadir Shah devalued his own currency, making the double paisa coin into a single paisa coin, and ordered money lenders to store no more than 50 mahmoodis (silver coins) in their shops.


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