UPSC Prelims 2026 · Question 13 of 96

UPSC Prelims 2026 question on Pali Texts Coinage

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:

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2
Show answer

Answer: C. Both 1 and 2

Analysis

Both inferences follow, so the answer is Option (c).

Statement by statement

Statement 1 is correct: References to various types of coins in Pali literature point to the growth of trade and a vibrant commercial economy. The widespread recovery of punch-marked coins from archaeological sites further indicates the circulation of currency, which facilitated market transactions, supported specialised crafts and occupations, and enabled the movement of goods across regions. Such economic developments are closely associated with the rise and expansion of urban centres in early historic India.

Statement 2 is correct: The occurrence of terms such as kahapana, nikkha, kamsa and kakanika in Pali texts, coupled with archaeological evidence of punch-marked coins, highlights the increasing importance of metallic currency in everyday economic life. These developments signify a gradual transition from a predominantly barter-based system to a more monetised economy, where coins played an important role in trade, taxation and commercial exchange.

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