The
Reserve Bank of India was set up as a share holders' bank. The
share flotation in March 1935 was the largest of its kind ever
attempted in the country. Despite this, the issue was heavily
oversubscribed. The image above is a picture of one of the first
dividend warrants issued in 1936 to the shareholders.
It is interesting to observe the rate of dividend
as well as the rate of Income Tax is expressed in absolute terms,
i.e., in rupees, annas and pies.
The rate of dividend is indicated as 2 rupees and
10 annas.
The rate of income tax is indicated on the certificate
as 30 1/3 pies per rupee.
Q1. Can we calculate the rate of dividend in percentage
terms?
Q2. Also calculate the rate of income tax in percentage
terms.
Hint:
Q1: You need to know
how many annas made one rupee.
Q2: The rate is expressed
in "pies" per rupee. The information that you need is
how many "pies" make one rupee, in other words you need
to know the monetary system prevailing at that time.
The Monetary System in 1935 consisted of the rupee,
annas, pice and pies. For information on how many pies made a
pice and how many pice made an annna and how many annas made a
rupee visit our Museum Site. You will get this information in
the Coinage Section under Republic India at RBI
Monetary Museum > Republic India Coinage
Happy Calculating! India shifted over to the decimal
system in 1957. This has accounting so much easier. Are you not
glad we live in easier times!