Official Question UPSC 2026
Consider the following statements : I. Pali texts contain the first definite references to coins, e.g., kahapana, nikkha, kamsa, and kakanika. II. The literary evidence from Pali texts is corroborated by archaeological evidence of punch-marked coins from many sites, most of them made of silver. The above statements have been associated with which of the following ? 1. Emergence of urban life 2. Transition to money economy Select the answer using the code given below :
Solution & Analysis
Answer: C
Historical consensus places the introduction of metallic money in India around the 6th century BCE:
•Link to Money Economy (Statement 2): Early Buddhist literature (Pali texts) meticulously documents the shift from barter to commerce. Terms like kahapana (karshapana) and nikkha represent standardized units of value. The massive archaeological unearthing of silver punch-marked coins proves a definitive, structural transition to a money economy, enabling wage labor, standardized pricing, and complex lending (usury).
•Link to Emergence of Urban Life (Statement 1): This monetization did not happen in a vacuum; it was the primary economic engine of the Second Urbanization. The ability to trade over long distances (via routes like the Uttarapatha) and accumulate wealth efficiently in coin form directly fueled the rise of fortified cities (nagaras), powerful merchant guilds (srenis), and the great Mahajanapadas of the Gangetic valley.
Conclusion: The numismatic evidence of punch-marked coins is the foundational link connecting the transition to a money economy with the subsequent explosion of urban life. Therefore, both 1 and 2 are correct.