Establishment of the Khalsa Raaj
With the establishment of the Khalsa Raaj, Baba Banda Singh Jee assumed something of a regal state. He repaired the old Imperial fort of Mukhlispur in Sadhaura and gave it the name of ‘Lohgarh’ (Iron Fort) and established the Khalsa Raaj’s capital there. Although he was like a king, in accordance to Gurmat Baba Jee gave all credit of his victory to Guru Jee and ruled through the system of the Panj (Five) and set up Panchayats (authority rested in five) in villages and towns across Panjab. A Sarpanch, (representative of the five) would be the forefront. Just as there are calendars based on emperors and rulers, Baba Banda Singh Jee introduced his own calendar that starts in the year of the Khalsa’s victory at Sirhind. As a firm declaration of the Sikh sovereignty, coins were struck in the name of the Sikh Gurus and used throughout thr Raaj.

The ‘Nanak-Gobind Singh’ coin has inscribed in Persian:

    Sikka zad bar har do alam Tegh-.i-Nanak wahib ast,
    Fateh Gobind Singh Shah-i-Shahan Fazal-i-Sacha Sahib ast.
    'Struck coin in the two worlds, by the grace of the true Lord,
    Victory to Gobind Singh, the King of Kings;
    The sword of Nanak is the granter of desires.'


On the reverse were the words:

    Zarb ba aman-ud-dahar, masawwrat shahar,
    Zina t- u- takht-i-mubarak-bakht.
    'Coined at the refuge of the world, Model (painting) of city, the
    Ornament of the Fortunate Throne.'


These were the titles and epithets assigned by him to Lohgarh, just as each imperial city had its appropriate honorific name. He also introduced an official seal for his Hukamnamas (letters) and Furmans (orders). It bore the inscription.

    Deg-o-Tegh- o-Fateh Nusrat-i-bedirang,
    Yaft az Nanak Guru Gobind Singh.
    'Kettle (the means to feed the poor), Sword (the power to protect
    the weak and helpless), Victory and Unhesitating Patronage (are)
    obtained from Nanak Guru Gobind Singh.