The Problem Of Rupee

The Problem of the Rupee: Its Origin and Its Solution

-by Dr. B. R. Ambedkar

The Problem of the Rupee is Dr. B. R. Ambedkar’s groundbreaking study of India’s monetary history, currency systems, and financial instability under British rule. First published in 1923, this classic work examines how flawed economic policies—particularly the silver standard and the gold exchange standard—shaped the value of the Indian rupee and affected the country’s economy.

Ambedkar traces the evolution of the rupee from ancient times to the colonial period, critically analyzing the decisions that led to inflation, currency depreciation, and structural economic imbalance. Using sharp economic reasoning, he exposes how British monetary policy prioritized imperial interests over India’s financial stability.

Key themes of the book include:

• Historical origin of the Indian rupee and its changing standards

• Ambedkar’s critique of the silver and gold exchange systems

• The impact of British monetary policies on Indian trade and prices

• The need for a sound, stable, and autonomous monetary system

• His persuasive argument for adopting the gold standard and establishing a central bank

Ambedkar’s recommendations in this book directly influenced the formation of the Reserve Bank of India (RBI) in 1935, making the work one of the most important economic texts in modern Indian history.

Clear, analytical, and deeply insightful, The Problem of the Rupee remains essential reading for students of economics, history, public policy, and anyone interested in understanding the foundations of India’s financial system.