UPSC Prelims 2026 Question:

Consider the following statements:

1. Pali texts contain the first definite references to coins, e.g., kahapana, nikkha, kamsa, and kakanika.
   
2. 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 :

Explanation: 

The emergence of coinage was an important feature of early urbanization and the growth of trade in ancient India.

•   Pali texts contain the first definite references to coins such as kahapana, nikkha, kamsa, pada,  masaka, and kakanika. Archaeological evidence from many sites has also yielded punch-marked coins,  most of them made of silver, confirming the literary references.
  
• The beginning of coined money around the 6th–5th centuries BCE marked a major change in economic  transactions. It promoted long-distance trade, expanding markets, and increasing commercialization. The  use of money also led to the rise of money-lending, instruments of credit, and banking practices. So,  statement 2 is correct.
  
  
• At the same time, the spread of coinage was closely linked with the emergence of urban life in the age  of Mahajanapadas. Urban centres required more sophisticated systems of trade and exchange, which  coinage helped facilitate. So, statement 1 is correct.
  
  

Therefore, option (3) is the correct answer.