Yes British India silver currency was unlimited legal tender in British India territory and in those states which enjoyed independent flag freedom like alwar, bikaner etc. during British rule, British India rupee was made a unlimited legal tender in 1834 after implementation of currency act. Prior to 1834 when presidencies Bombay, Calcutta & Madras were entrusted with the job of minting rupee's the Indian rupee was not a legal tender.

John Capper has written:

'The three presidencies of India' -- subject(s): History

'The emigrant's guide to Australia'

'The Duke of Edinburgh in Ceylon' -- subject(s): Hunting

'The three presidencies of India' -- subject(s): History

In 1784, the British government passed the India Act and took indirect control of the Indian possessions. It appointed a Governor-General, who would have control of the three presidencies. There would also be provincial governors and a Commander-in-Cheif of the armed forces. The EIC continued to trade, but lost most of its administrative powers.

the British East India Company

in mahalwari system

* it was mostly followed in northern India ie in parts of uttar pradesh, Punjab, delhi and central India.

*the heads of the mahals (house, estate or village) collected revenue.

in ryotwari system

*it was implemented in Bombay and madras presidencies.

*the ryot (cultivator) paid the revenue directly to the british.