[1] Until 1892, silver was the metal on which Indian currency and coinage had largely been based.
In 1892, the Government of India announced its intent to "close Indian mints to silver" and, in 1893, it brought this policy into force.
[2] The action of the government in abandoning silver coinage was driven by the relative decline of the value of silver against gold, which had led to an accompanying decline of the rupee against gold and gold-based currencies (such as the British sovereign).
[3] India had been importing about a quarter of the annual global production of silver, in part to meet its currency issuing requirements.
[4] Some commentators noted that silver was gradually being globally discarded as a basis of currency, with only three main remaining supporters: Mexico (a major producer of silver), the United States, and India.