Token Currency

Another controversial project undertaken by Muhammad bin Tughlaq was the introduction of "Token Currency". According to Barani, the Sultan introduced token currency because the treasury was empty due to the Sultan’s schemes of conquest as well as his boundless generosity.

Some historians are of the opinion that there was a shortage of silver world wide at that time and India too faced the crisis therefore, the Sultan was forced to issue copper coins in place of silver.

Muhammad introduced a copper coin (Jittal) in place of silver coin (tanka) and ordered that it should be accepted as equivalent to the tanka. However, the idea of token currency was new in India and it was difficult for traders and common people to accept it.

The State also did not take proper precautions to check the imitation of coins issued by the mints. Government could not prevent people from forging the new coins and soon the new coins flooded the markets. According to Barani the people began to mint token currency in their houses. However the common man failed to distinguish between copper coin issued by the royal treasury and those which were locally made. Thus, the Sultan was forced to withdraw the token currency.