Established in 1954, the award comprises a plaque and a cash prize of ₹ 1,00,000. The award's purpose is to recognise and promote excellence in Indian writing and also acknowledge new trends. The annual process of selecting awardees runs for the preceding twelve months. The plaque awarded by the Sahitya Akademi was designed by the Indian film-maker Satyajit Ray. Prior to this, the plaque occasionally was made of marble, but this practice was discontinued because of the excessive weight. During the Indo-Pakistan War of 1965, the plaque was substituted with national savings bonds.