Paise

Paise is a monetary subunit used in several currencies in South Asia, most notably as the subdivision of the Indian rupee and the Pakistani rupee. One rupee is equal to 100 paise. The Nepalese rupee is also divided into 100 paise. In practice, paise are most commonly encountered as coins, while banknotes are issued in higher denominations.

Etymology and origin: The word paisa comes from Persian paisā, meaning money. The term entered Hindustani languages during medieval and early modern periods and spread to other languages in the region.

Usage and status: Prices are often quoted to the nearest paise in everyday transactions, especially for small amounts. Over time, inflation and minting patterns have reduced the use of low-value paise coins in many currencies, so some denominations have fallen out of circulation. In India, paise are largely unused in daily transactions today, with prices frequently rounded to the nearest rupee; Pakistan has similarly seen reduced use of very small paise coins.

History: The paise originated in traditional coinage and were standardized with decimalization in the 20th century. The Indian rupee was decimalized in 1957, establishing 100 paise per rupee, and other regional currencies followed the general model of a 100-to-1 relationship. The status and minting of paise coins vary by country and over time, reflecting inflation, purchasing power, and monetary policy.