During the Saka-Satavahana period the range of interest on fixed deposit (akshayanivi) as described in the inscription of Nasik Cave No. 10 was:
Understanding Ancient Indian Finance: Saka-Satavahana Period Interest Rates
The question asks about the range of interest paid on fixed deposits, known as akshayanivi, during the Saka-Satavahana period, specifically as documented in the inscription found in Nasik Cave No. 10.
The Saka-Satavahana period was a significant era in ancient Indian history, marked by interactions between the Saka rulers (like the Kshaharata dynasty) and the Satavahana dynasty. This period saw developments in trade, economy, and social structures. Inscriptions from this time provide valuable insights into various aspects of life, including financial practices.
What was Akshayanivi?
Akshayanivi translates to 'perpetual endowment' or 'inexhaustible fund'. These were deposits made, often for charitable or religious purposes, with guilds or individuals. The principal amount was intended to remain intact, while the interest earned from the deposit was used to fund specific activities or services perpetually.
Nasik Cave No. 10 Inscription
The inscription in Nasik Cave No. 10 is particularly important. It records the endowments made by Ushavadata, the son-in-law of the famous Kshaharata ruler Nahapana. Ushavadata made several charitable donations, including depositing funds (akshayanivi) to ensure continuous provision for monks and others.
According to the inscription, Ushavadata deposited these funds with different guilds (known as shrenis) or sometimes with individual traders. The inscription explicitly mentions the interest rates paid on these deposits. There were two different rates specified for different endowments:
- One deposit earned interest at the rate of 9% per annum.
- Another deposit earned interest at the rate of 12% per annum.
These rates were standard for fixed deposits (akshayanivi) at the time when placed with reliable guilds or merchants. The interest generated was used for specific purposes like feeding ascetics or providing them with clothing.
Determining the Interest Range
Based on the specific rates mentioned in the Nasik Cave No. 10 inscription by Ushavadata, the range of interest on fixed deposits (akshayanivi) was from 9% to 12% per annum.
Let's look at the options provided:
| Option | Interest Range | Matches Inscription? |
|---|---|---|
| 1 | From 6 to 9% | No (Includes 6%) |
| 2 | From 9 to 12% | Yes (Exactly the rates mentioned) |
| 3 | From 12 to 16% | No (Includes 16%) |
| 4 | From 15 to 18% | No (Rates are too high) |
The inscription in Nasik Cave No. 10 clearly indicates interest rates of 9% and 12% for different akshayanivi deposits. Therefore, the range described in the inscription was from 9% to 12%.
Revision Table: Key Terms and Concepts
| Term/Concept | Explanation |
|---|---|
| Saka-Satavahana Period | A period in ancient India involving interactions between Saka and Satavahana dynasties. |
| Nasik Cave No. 10 | A cave containing significant inscriptions, particularly those of Ushavadata. |
| Inscription | Writing carved on a hard surface, serving as a historical record. |
| Akshayanivi | Perpetual endowment or fixed deposit, where interest is used for perpetual purpose. |
| Ushavadata | Son-in-law of Nahapana (Saka ruler), known for his charitable endowments recorded in Nasik inscriptions. |
| Guilds (Shrenis) | Associations of artisans, merchants, or professionals in ancient India, often acting as banks. |
Additional Information: Ancient Indian Economic Practices
The Nasik inscriptions and others from ancient India reveal sophisticated economic practices. Here are some points:
- Role of Guilds: Guilds were powerful economic bodies. They not only regulated crafts and trades but also acted as banks, accepting deposits and lending money. Their reliability made them preferred institutions for depositing perpetual endowments (akshayanivi).
- Interest Rates: Interest rates varied depending on the period, location, borrower (individual, guild, state), and the purpose of the loan. The rates mentioned in the Nasik inscription (9% and 12%) are considered moderate for fixed deposits placed with reliable entities like guilds. Other inscriptions and texts sometimes mention higher rates for riskier loans.
- Purpose of Endowments: Religious and charitable endowments (like akshayanivi) were common. They funded temples, monasteries, schools, public works, and provisions for the poor or ascetics. The perpetual nature ensured that the intended service or charity continued indefinitely, funded by the interest.
- Economic Prosperity: The ability to make large endowments and the existence of institutions like guilds handling financial transactions with specified interest rates suggest a degree of economic stability and prosperity during certain phases of the Saka-Satavahana period.
Understanding inscriptions like those at Nasik provides direct evidence of the economic, social, and religious life of ancient India, offering insights into financial instruments like the akshayanivi and the prevailing interest rates.
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