Rani was born on December 8, 1946 as Nasira Sarfraz in Mozang Lahore . Her father was a driver for Mukhtar Begum, a singer and the wife of Agha Hashar Kashmiri, a well-known Urdu dramatist.
Mukhtar Begum took over Rani for proper upbringing. She settled in Karachi and wanted Rani to follow, but Rani's voice was not suitable as singer. Rani was interested in dancing and later performed in her films. Mukhtar Begum suggested the stage name Rani for her.
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