The Indian Rupee is the official currency of the Republic of India. The international code of Indian Rupee is INR and it denoted by symbol. The Reserve Bank of India, India\u2019s federal bank is the sole authority to control the Indian rupee.<\/p>\n
The Indian rupee is subdivided into 100 paise (singular: paisa), however the division is now theoretical as many coins less than 50 paise denominations, ceased to exist\u00a0 as a legal tender from June 30, 2011. Banknotes are issued in denominations such as 5, 10, 50, 100, 500, 1000 rupees. Rupee coins are also issued, having denomination like 1, 2, 5, and 10.<\/p>\n
The symbol \u00a0was officially adopted in 2010, which has been derived from a Devangari consonant (ra).\u00a0 Devengari was an ancient language of India.\u00a0 The first series of coins carrying the print of rupee symbol were introduced in 8 July, 2011.<\/p>\n
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Symbol<\/p>\n
The new symbol is a combination of the\u00a0Devanagari letter (ra<\/em>) and the\u00a0Latin\u00a0capital letter “R” without its vertical bar (akin to the\u00a0R rotunda). The two straight lines at the top (with white space between them) are said to make an allusion to the Indian flag and also exemplify an equality sign, which signifies the nation’s desire to cut the economic disparity.<\/p>\n While rupee coins of denominations of 1, 2, 5 and 10 with the new rupee sign have been put into circulation in 2011, banknotes of denomination 10, 100, 500 and 1000, having the new symbol were circulated in January 2012.<\/p>\n The Indian rupee etymology<\/p>\n (rupiyo) in\u00a0Gujarati<\/p>\n (rupa) in\u00a0Malayalam<\/p>\n Unlike in many Indian languages where word rupee derived from \u201cra\u201d, a Devanagari script , in some other \u00a0regional languages such as Assamese,\u00a0Bengali and Oriya, the Indian rupee is officially known by names derived from the word (Tanka), which means “money. ”<\/p>\n <\/p>\n Origin of the Symbol<\/strong><\/p>\n Earlier on 5 March 2009, the Indian government announced a competition to create a sign for the Indian rupee. \u00a0Then in 2010 Union Budget\u00a0presentation, Finance Minister\u00a0Pranab Mukherjee\u00a0mentioned that the future symbol should mirror and capture the Indian ethos and culture.<\/p>\n Following Finance Minister\u2019s announcement, 3,331 responses were received from all across the nation. \u00a0\u00a0However, only five signs, created by Nondita Correa-Mehrotra, Hitesh Padmashali, Shibin KK, Shahrukh J Irani and\u00a0D Udaya Kumar, were shortlisted.<\/p>\n Initially, it was decided the Union Council of Ministers of India would held a meeting on 24 June 2010 to choose the final symbol. However, the decision was deferred by request of the finance minister. Then later on 15 July 2010 the Indian government finally selected the symbol created by D. Udaya Kumar.<\/p>\n The selection procedure was disputed under the\u00a0Right to Information Act\u00a0in the\u00a0Delhi High Court. The petitioner, Rakesh Kumar (a contestant in the competition), argued that the process was \u201cfull of discrepancies” and “flawed”.<\/p>\n On 26 November 2010, the Delhi High Single-Bench Court turned down the writ petition, stating there were no reasonable grounds for the allegations. However, on 31 March 2011 the Chief Justice and Justice Sanjiv Khanna of the Delhi High Court permitted\u00a0RTI\u00a0activist Rakesh Kumar Singh to file Public interest litigation against the Indian rupee symbol selection procedure.<\/p>\n According to guideline number five of the challenge, submitted symbols were required to be “in the Indian National Language Script or a visual representation”. It has been disputed that this rule violates the\u00a0Constitution of India, as it does not specify a particular language script as\u00a0the<\/em>\u00a0Indian National Language Script. Later\u00a0on April 25, 2012 the Delhi High court sent a notice to the government of India on the rupee (and other symbols) selection process.<\/p>\n Numeral System<\/p>\n The Indian numeral system is based on the decimal system, with two noteworthy dissimilarities from Western systems using\u00a0long and short scales. The system is extensively employed in everyday monetary transactions in the Indian subcontinent.<\/p>\n <\/p>\n For Instance, consider this amount: 3, 22,80,730.25.\u00a0 In India this number will be read as “three crores, twenty-two lakhs, eighty thousand, seven hundred thirty rupees and twenty-five paise”.<\/p>\n The use of millions (or billions) in the Indian subcontinent is rare and the usage depends on the educational background of the speaker.<\/p>\n History<\/p>\n The first “rupee” is thought to have been introduced by\u00a0Sher Shah Suri\u00a0(1486\u20131545), which was based on a ratio of 40 copper pieces (paisa) per rupee.<\/p>\n Some of the other issues of paper rupees include the Bank of Hindustan (1770\u20131832), the General Bank of Bengal and Bihar (1773\u201375, established by\u00a0Warren Hastings) and the Bengal Bank (1784\u201391). The Madras Presidency\u00a0also issued a currency based on the panam, with 12 panams to the rupee until 1815.<\/p>\n The rupee, originally a silver coin, is said to have been derived from the\u00a0Sanskrit\u00a0word\u00a0raupya<\/em>, meaning silver. \u00a0As a result, there were severe consequences for countries like India in the nineteenth century, when the strongest economies in the world adopted the\u00a0gold standard. \u00a0As huge amounts of silver was discovered in the U.S. and several European colonies, the value of silver relative to gold declined significantly. The Indian currency consequently got devalued sharply. This incident was noted as “the fall of the rupee”. This event is explained below.<\/p>\n Following imperial order-in-council of 1825, which envisaged introducing British\u00a0sterling\u00a0coinage to the British colonies, India, however, was unaffected. .British India, at that time, was administered by the\u00a0British East India Company. The silver rupee continued to circulate as the currency of India through the\u00a0British rule\u00a0and beyond. In 1835, British India implemented a mono-metallic silver standard based on the rupee; this decision was influenced by a letter written by\u00a0Lord Liverpool in 1805 praising the virtues of mono-metallism.<\/p>\n After the\u00a0Indian Mutiny\u00a0in 1857, the British government took over the direct control of British India. From 1851, gold sovereigns were made all together\u00a0at the\u00a0Royal Mint\u00a0in\u00a0Sydney,New South Wales. In\u00a0 1864, in an effort \u00a0to make the British\u00a0gold sovereign\u00a0the “imperial coin”, the treasuries in\u00a0Bombay (Mumbai) \u00a0and\u00a0Calcutta (Kolkata)\u00a0were ordered to receive\u00a0gold sovereigns; however, these gold sovereigns never left the vaults. As the British government lost all the hope of replacing the rupee in India with the pound sterling, it realized for the same reason it could not replace the\u00a0silver dollar\u00a0in the\u00a0Straits Settlements with the Indian rupee (as the British East India Company had desired).<\/p>\n Following the beginning of the silver crisis of 1873, quite a few nations adopted the gold standard; however, India continued to implement the silver standard until it was replaced by a basket of commodities and currencies in the late 20th century.<\/p>\n 1845, the Indian rupee replaced the\u00a0Danish Indian rupee, \u00a0followed by the\u00a0French Indian rupee\u00a0in 1954 and the\u00a0Portuguese Indian escudo\u00a0in 1961. After gaining the independence of British India in 1947 and the\u00a0accession of the\u00a0princely states \u00a0to the new\u00a0Union, the Indian rupee became the de facto currency,\u00a0 replacing \u00a0all the currencies of the previous -independent states (only \u00a0the\u00a0Hyderabadi rupee was not demonetized until 1959).<\/p>\n While some of the states had issued rupees equivalent to those issued by the British (such as the\u00a0Travancore rupee), other currencies (including the Hyderabadi rupee and the\u00a0Kutch kori) had varied values.<\/p>\n Below are the values of the subdivisions of the rupee during British rule (including the first decade of independence)<\/p>\n In 1957, the rupee was\u00a0decimalized\u00a0and subdivided into 100\u00a0naye paise<\/em>\u00a0(Hindi for “new paise”); in 1964, the word “naye” was dropped.<\/p>\n The Fall of Rupee<\/p>\n After its victory in the\u00a0Franco-Prussian War\u00a0(1870\u201371), Germany dug out a huge compensation and protection money from France of \u00a3200,000,000, and then moved to join\u00a0Britain\u00a0on a gold standard for currency. \u00a0Subsequently, France, the U.S. and other industrializing countries followed Germany in adopting a gold standard throughout the 1870s.During this period, other countries, such as Japan, which did not have the necessary access to gold or those, and countries like India, which were subject to imperial policies that determined that they did not adopt a gold standard, remained mostly on a silver standard. As a consequence, a huge divide between silver-based and gold-based economies emerged. The worst affected were those economies that adopted silver standard and traded mainly with economies with gold standard. Amid discovery of more and more silver reserves, those currencies based on gold continued to soar in value and those based on silver were falling owing to demonetization of silver. In case of India, which carried out most of its trade with gold based countries, particularly Britain, the impact of this shift was huge. As the price of silver continued to slide, the exchange value of the rupee also kept dropping, relative to\u00a0pound sterling.<\/p>\n East African coast and South Arabia<\/strong><\/p>\n The rupee and subsidiary coinage have also been used in\u00a0East Africa,\u00a0Arabia\u00a0and\u00a0Mesopotamia at various times. The use of the rupee in East Africa stretched from\u00a0Somalia\u00a0in the north to Natal\u00a0in the south. While in Mozambique the British India rupees were over-stamped, in Kenya the\u00a0British East Africa Company\u00a0minted the rupee and its fractions.<\/p>\n The gain in the price of silver straight away after the First World War resulted in rupee climbing in value to two shillings\u00a0sterling. In 1920 in\u00a0British East Africa\u00a0a\u00a0florin\u00a0coin was issued, bringing the currency into same level with sterling.\u00a0 Soon after, the florin was divided into two\u00a0East African shillings. Nevertheless, this adaptation to sterling did not happen in British India itself. In Somalia the Italian imperial power minted\u00a0rupia<\/em>\u00a0to the equal standard, calling the paisa as\u00a0besa<\/em>.<\/p>\n Straits Settlements<\/strong><\/p>\n The\u00a0Straits Settlements were initially an outlier of the\u00a0British East India Company. The\u00a0Spanish dollar\u00a0was widely used in the Settlements long before the British arrived during the 19th century; however, the East India Company attempted to substitute it with the rupee. This attempt was opposed by the locals; by 1867 (when the British government managed to get the direct control of the Straits Settlements from the East India Company), attempts to adopt the rupee were finally abandoned.<\/p>\n International use<\/strong><\/p>\n After the partition of India (1947), the\u00a0Pakistani rupee\u00a0came into existence. To begin with Pakistani authorities used Indian coins and Indian currency notes by simply over-stamping with “Pakistan”. Earlier the Indian rupee was also considered as the official currency of many countries such as the Aden,\u00a0Oman,\u00a0Kuwait,\u00a0Bahrain,\u00a0Qatar, the\u00a0Trucial States,\u00a0Kenya,\u00a0Tanganyika,\u00a0Uganda, the\u00a0Seychelles\u00a0and\u00a0Mauritius.<\/p>\n The Indian government introduced the\u00a0Gulf rupee\u00a0\u2013 also called as the Persian Gulf rupee (XPGR) \u2013 as a substitute for the Indian rupee for circulation outside the country with the Reserve Bank of India (Amendment) Act of 1 May 1959.<\/p>\n The introduction of a separate currency was an effort to decrease the strain on India’s foreign reserves from gold smuggling. After India undervalued the rupee on 6 June 1966, those countries still using it \u2013 Oman, Qatar, and the Trucial States (which merged to form the\u00a0United Arab Emirates\u00a0in 1971) \u2013 replaced the Gulf rupee with their own currencies. Kuwait and Bahrain had already introduced their own currencies in 1961 and 1965, respectively.<\/p>\n The\u00a0Bhutanese ngultrum\u00a0is pegged at par to the Indian rupee. In Bhutan both Indian rupee and Bhutanese ngultrum are legal tender. \u00a0The\u00a0Nepalese rupee is pegged at 0.625 Rs; the Indian rupee is a legal tender in Nepal, however denominations of 500- and 1000-rupee banknotes are abandoned due to counterfeiting. Sri Lanka’s rupee is not pegged to India’s currency; but it is pegged to the US dollar.<\/p>\n <\/p>\n Coins<\/p>\n East India Company, 1835<\/strong><\/p>\n Each of the three Presidencies formed by the\u00a0British East India Company (Bengal,\u00a0Bombay\u00a0and\u00a0Madras) issued their independent coinages until 1835. All three issued rupees and fractions thereof down to\u00a01<\/sup>\u20448<\/sub>– and\u00a01<\/sup>\u204416<\/sub>-rupee in silver. Madras also printed two-rupee coins.<\/p>\n Copper denominations were more wide-ranging. While Bengal issued one-pie,\u00a01<\/sup>\u20442<\/sub>-, one- and two-paise coins, Bombay issued 1-pie,\u00a01<\/sup>\u20444<\/sub>-,\u00a01<\/sup>\u20442<\/sub>-, 1-, 11<\/sup>\u20442<\/sub>-, 2- and 4-paise coins. In Madras copper coins for two and four pies and one, two and four paisa, with the first two denominated as\u00a01<\/sup>\u20442<\/sub>\u00a0and one dub (or\u00a01<\/sup>\u204496<\/sub>\u00a0and\u00a01<\/sup>\u204448<\/sub>) rupee were issued. Madras also circulated the\u00a0Madras fanam\u00a0until 1815.<\/p>\n All three Presidencies also issued gold\u00a0mohurs\u00a0and fractions of mohurs (including\u00a01<\/sup>\u204416<\/sub>,\u00a01<\/sup>\u20442<\/sub>,\u00a01<\/sup>\u20444<\/sub>\u00a0in Bengal,\u00a01<\/sup>\u204415<\/sub>\u00a0(a gold rupee) and\u00a01<\/sup>\u20443<\/sub>\u00a0(pancia) in Bombay and\u00a01<\/sup>\u20444<\/sub>,\u00a01<\/sup>\u20443<\/sub>\u00a0and\u00a01<\/sup>\u20442<\/sub>\u00a0in Madras.<\/p>\n In 1835, a uniform coinage for the EIC was introduced. It included copper\u00a01<\/sup>\u204412<\/sub>,\u00a01<\/sup>\u20444<\/sub>\u00a0and\u00a01<\/sup>\u20442<\/sub>\u00a0anna, silver\u00a01<\/sup>\u20444<\/sub>,\u00a01<\/sup>\u20443<\/sub>\u00a0and 1 rupee and gold 1 and 2 mohurs. Subsequently, in 1841, silver 2 annas were added, followed by copper\u00a01<\/sup>\u20442<\/sub>\u00a0pice in 1853. The coinage of the EIC continued to be circulated until 1862, even after the Company had been taken over by the Crown.<\/p>\n Regal issues, 1862\u20131947<\/strong><\/p>\n In 1862, coins were introduced (also called as “regal issues”) which carried a depiction of\u00a0Queen Victoria and the designation “India”. The denominations comprised of: \u00a01<\/sup>\u204412<\/sub>\u00a0anna,\u00a01<\/sup>\u20442<\/sub>\u00a0pice,\u00a01<\/sup>\u20444<\/sub>\u00a0and1<\/sup>\u20442<\/sub>\u00a0anna (all made out of copper), 2 annas,\u00a01<\/sup>\u20444<\/sub>,\u00a01<\/sup>\u20442<\/sub>\u00a0and one rupee ( made from silver), and five and ten rupees and one mohur ( made from gold). The production of gold denominations ended completely in 1891, and no\u00a01<\/sup>\u20442<\/sub>-anna coins were issued after 1877.<\/p>\n In 1906, bronze substituted copper for the lowest three denominations; followed\u00a0 by \u00a0cupro-nickel one-anna coin which \u00a0was introduced 1907. Between 1918 and 1919 cupro-nickel two-, four- and eight-annas were introduced, even though the four- and eight-annas coins were only issued until 1921 and did not replace their silver equivalents. In 1918, the Bombay mint also minted\u00a0gold sovereigns and 15-rupee coins almost equal in size to the sovereigns as an emergency measure during to the First World War.<\/p>\n In the early 1940s, several modifications were applied. The production of\u00a01<\/sup>\u204412<\/sub>\u00a0anna and\u00a01<\/sup>\u20442<\/sub>\u00a0pice ceased , while the\u00a01<\/sup>\u20444<\/sub>\u00a0anna was changed to a bronze, later, \u00a0holed coin, cupro-nickel and nickel-brass\u00a01<\/sup>\u20442<\/sub>-anna coins were introduced, nickel-brass was used to make some one- and two-annas coins, and the silver proportion was reduced from 91.7 to 50 percent. The latest of the regal issues include: cupro-nickel\u00a01<\/sup>\u20444<\/sub>-,\u00a01<\/sup>\u20442<\/sub>– and one-rupee pieces minted between 1946 and 1947.<\/p>\n \u00a0<\/strong><\/p>\n Independent predecimal issues, 1950\u20131957<\/strong><\/p>\n After becoming a sovereign state in 1947, India issued first coins in 1950 that included 1 pice,\u00a01<\/sup>\u20442<\/sub>, one and two annas,\u00a01<\/sup>\u20444<\/sub>,\u00a01<\/sup>\u20442<\/sub>\u00a0and one-rupee denominations. The dimensions and composition were the same as the final regal issues, except for the one-pice (which was bronze, but not holed)<\/p>\n Independent decimal Issues 1957 onwards <\/strong><\/p>\n The first decimal-coin issues in India included denominations of 1, 2, 5, 10, 25 and 50 naye paise, and 1 rupee. The 1 naya paisa was made from bronze; the 2, 5 & 10 naye paise were made from cupro-nickel, and the 25 naye paise (also known as\u00a0chavanni<\/em>; 25 naye paise equals 4 annas), 50 naye paise (also called\u00a0athanni<\/em>; 50 naye paise was equivalent to 8 old annas) and 1-rupee coins were made from nickel. In 1964, the word\u00a0naya(e)<\/em>\u00a0removed\u00a0 from all coins. During the period of 1964 and 1967, aluminum one-, two-, three-, five- and ten-paise coins were introduced. In 1968, 20-paise coins made from nickel bronze were introduced, and replaced by aluminum coins in 1982.<\/p>\n During the period between 1972 and 1975, cupro-nickel came as replacement for nickel in the 25- and 50-paise and the 1-rupee coins; then in 1982, cupro-nickel two-rupee coins were introduced. In 1988\u00a0stainless steel\u00a010-, 25- and 50-paise coins were introduced, followed by 1- and 5-rupee coins in 1992. Five-rupee coins, produced from\u00a0brass, are being minted by India\u2019s central bank, the\u00a0Reserve Bank of India (RBI).<\/p>\n In the period between 2005 and 2008 new, lighter fifty-paise, one-, two- and five-rupee coins were introduced.\u00a0 All of these coins were made from ferritic stainless steel. Since the face value of melted older coins was less than the scrap value, RBI was pressed to mint a new series. The circulation of the 25 paise was stopped so were other coins with nominal value less than 50.\u00a0 \u00a0(50 paise \u2013 also referred as \u00a0athanni<\/em>\u00a0\u2013 one, two, five and ten rupees, with the new rupee symbol came in circulation from 2011 onwards. Coins frequently used are one, two, five and ten rupees and although, it is still legal tender, the 50-paise (athanni<\/em>) coin is rarely seen in circulation.<\/p>\n The following chart summarizes different coins of India having varied features<\/p>\n <\/p>\n Banknotes<\/p>\n The central government of India approves all the designs, after receiving suggestions from the Central Board of Reserve Bank of India. At present, currencies notes are printed in five different locations which include:\u00a0a Currency Note Press in\u00a0Nashik, the Bank Note Press in\u00a0Dewas, the Bharatiya Note Mudra Nigam (P) presses at\u00a0Salboni\u00a0and\u00a0Mysore\u00a0and at the Watermark Paper Manufacturing Mill in\u00a0Hoshangabad.<\/p>\n The latest series of banknotes (which were first issued in 1996) is known as the\u00a0Mahatma Gandhi series. Banknotes are issued in seven denominations that include:\u00a05,\u00a010,\u00a020,\u00a050,\u00a0100,\u00a0500 and\u00a01000. Even though printing of\u00a05 notes had stopped earlier, it was resumed in 2009.\u00a0ATMs\u00a0generally distribute\u00a0100,\u00a0500 and\u00a01,000 notes. Although a\u00a0zero rupee note\u00a0is not an official government issue, as a symbol of protest it is printed and distributed by an\u00a0NGO in India.<\/p>\n British India<\/p>\n Paper money was first introduced in 1861 by the government of India.\u00a0 A 10 rupee note was issued in 1864 followed by a 5-rupee notes in 1872, 10,000-rupee notes in 1899, 100-rupee notes in 1900, 50-rupee notes in 1905, 500-rupee notes in 1907 and 1000-rupee notes in 1909.<\/p>\n In 1917, 1- and 21<\/sup>\u20442<\/sub>-rupee notes were introduced. \u00a0In 1938, The\u00a0Reserve Bank of India started banknote production, issuing 2-, 5-, 10-, 50-, 100-, 1,000- and 10,000-rupee notes even as the government continued issuing 1-rupee notes.<\/p>\n Banknotes Issued After Independence<\/p>\n India after becoming a sovereign state, introduced new designs to replace the portrait of the king. While the government of India continued issuing the 1-rupee note, the Reserve Bank issued other denominations which included the 5,000- and 10,000-rupee notes originally introduced in 1949. During the 1970s, 20- and 50-rupee notes were introduced; denominations higher than 100 rupees were taken out of circulation in 1978. Then in 1987 the 500-rupee note was introduced, followed by the 1,000-rupee note in 2000. In 1995, one- and two-rupee notes were discontinued.<\/p>\n In September 2009, the\u00a0Reserve Bank of India\u00a0decided to introduce\u00a0polymer banknotes\u00a0on a trial basis. The idea was to issue, 100\u00a0crore (1\u00a0billion) pieces of polymer\u00a010 notes.<\/p>\n Since the polymer notes will have an average lifespan of five years it lasts four times longer than paper bank notes. Also, the officials from the Reserve Bank of India said that polymer notes are difficult to counterfeit. Polymer notes are also cleaner than paper notes.<\/p>\n Current Banknotes<\/p>\n The Reserve Bank of India issues\u201d Mahatma Gandhi series\u201d of banknotes. The name of the series is arrived from obverse of each note -which features a portrait of Mahatma Gandhi. After its introduction in 1996, this series has substituted all earlier issued banknotes. In 1996, The RBI introduced the series with\u00a010 and\u00a0500 banknotes. At present, the RBI issues banknotes of all the denominations, ranging from\u00a05 to\u00a01,000. The printing of\u00a05 notes (which had abandoned earlier) restarted in 2009.<\/p>\n As of January 2012, the new\u00a0Indian rupee symbol has been included in the banknotes of denominations of\u00a010,\u00a0100,\u00a0500 and\u00a01,000.<\/p>\n <\/p>\n Languages<\/p>\n Each banknote has its amount printed in 15 languages. While on the obverse side, the denomination is written in\u00a0English\u00a0and\u00a0Hindi. On the reverse is a language pane which exhibits the denomination of the note in 15 of the 22\u00a0official languages of India. All the languages included in the pane are placed in alphabetical order.\u00a0 The order of languages goes this way: \u00a0Assamese,\u00a0Bengali,\u00a0Gujarati,\u00a0Kannada Kashmiri,\u00a0Konkani,\u00a0Malayalam,\u00a0Marathi Nepali,\u00a0Oriya,\u00a0Punjabi,\u00a0Sanskrit,\u00a0Tamil,\u00a0Telugu\u00a0and\u00a0Urdu.<\/p>\n Security Features<\/p>\n The unique security features of current banknotes are:<\/p>\n Convertibility<\/p>\n Although the Indian rupee has a market-determined exchange rate,\u00a0 the RBI\u00a0 intervenes very frequently \u00a0in the USD\/INR currency market to stabilize\u00a0effective exchange rates. Therefore, the currency regime in place for the Indian rupee with respect to the\u00a0US dollar\u00a0is a\u00a0de facto<\/em>\u00a0controlled exchange rate. This is occasionally called a “managed float”. Other rates (such as the EUR\/INR and INR\/JPY) have the normal fluctuations typical of\u00a0floating exchange rates.<\/p>\n Unlike\u00a0China, Indian\u00a0administration\u00a0(both RBI, the central bank) has not followed a policy of pegging the INR to a certain foreign currency at a particular exchange rate. RBI intervention in currency markets is merely to make sure low volatility in exchange rates, and by no way the central bank tries to influence the rate (or direction) of the Indian rupee in relation to other currencies.<\/p>\n Another practice which plays a big part in convertibility is a series of\u00a0customs\u00a0regulations restricting the import and export of rupees. According to Indian Law, foreign nationals are disallowed from importing or exporting rupees; Indian nationals can import and export only up to the limit of 7,500 rupees at a time, and the possession of 500- and 1,000-rupee notes in\u00a0Nepal is illegal.<\/p>\n RBI also uses a system of\u00a0capital controls\u00a0along with its policy to intervene (through active trading) in currency markets. On the current account, there are no currency-conversion limitations, discouraging buying or selling foreign exchange (although trade barriers exist). On the capital account front, foreign institutional investors have the liberty of exchange convertibility, that is, to bring money into and out of the country and purchase securities (subject to quantitative restrictions).<\/p>\n Local firms are allowed to take capital out of the country in order to expand in international markets. However, local households have restrictions to carry foreign exchange abroad beyond a certain point. Because of the growth of the current and capital accounts, India is gradually moving towards full\u00a0de facto<\/em>\u00a0convertibility.<\/p>\n There is some uncertainty regarding the interchange of the currency with gold, but the system that India implements is that money cannot be exchanged for gold under any circumstances due to gold’s lack of liquidity and thus, money cannot be exchanged for gold by the RBI. India has adopted the same principle as Great Britain and the U.S.<\/p>\n Chronology<\/strong><\/p>\n The Indian Rupee Performance since 1957<\/p>\n After its Independence in 1947, India has encountered two major financial crises and two subsequent devaluations of the rupee: In 1966 and 1991.<\/p>\n 1966 Economic crisis<\/strong><\/p>\n After 1950, India continued to maintain huge trade deficits that increased in magnitude in the 1960s. In addition, the Government of India had a budget deficit issue and, as a result could not borrow money from abroad or from the private corporate sector, due to that sector\u2019s negative savings rate.<\/p>\n As a consequence, the government started issuing bonds to the RBI, which shoot up the money supply in the financial system, leading to inflation. In 1966, foreign aid, which was until then was a key factor in preventing devaluation of the rupee, was eventually stopped and India was told it had to liberalize its restrictions on trade before foreign aid would again materialize.<\/p>\n Moreover, The\u00a0Indo-Pakistani War of 1965 heavily weighed on Indian rupee. The US and other countries, friendly towards Pakistan withdrew foreign aid to India, which prompted the further need for rupee devaluation.<\/p>\n Defense spending in 1965\/1966 stood at 24.06% of total expenditure, a highest rate in the period from 1965 to 1988. The second factor which clubbed the exchange rate was the drought of 1965\/1966. The sharp rise in commodity prices in this period, which eventually resulted in \u00a0devaluation, was often blamed on the drought by government.<\/p>\n By the end of 1969, the Indian Rupee was trading at about 13 British Pence. A decade after, by 1979, it was trading at approximately 6 British Pence. Then by the end of 1989, the Indian Rupee had fallen to an all-time low of 3 British Pence. This triggered the beginning of a wave of irreversible liberalization reforms even as India moved away from populist measures.<\/p>\n 1991 Economic crisis<\/strong><\/p>\n In 1991, India still continued with its fixed exchange rate system policy, where the rupee was pegged to the value of a basket of currencies of major trading partners. India started experiencing huge balance of payments problems since 1985, and by the end of 1990, it found itself in grave economic problem. The government was on the verge of default and its foreign exchange reserves had exhausted up to the point that India could hardly finance three weeks\u2019 worth of imports. As in 1966, India also had high inflation and alarmingly high\u00a0government budget deficits. This prompted the government to devalue the rupee.<\/p>\n At the end of 1999, the Indian Rupee was devalued significantly.<\/p>\n Revaluation<\/strong><\/p>\n Between the period of 2000\u20132007, the Rupee stopped to get devalued and stabilized, ranging between 1 USD = INR 44\u201348. In the recent past, the Indian Rupee had started to gain value and by 2007 traded about 39 Rs to 1 US dollar, on continued foreign investment flows into the country.<\/p>\n This created problems for major exporters and BPO firms operating in the country. However, the trend has reversed recently with the 2008 world financial crisis. As of May 2012, the Indian rupee has been the worst performer among all Asian currencies, relative to US dollar. High rate of inflation, huge budget deficits, lack of foreign direct investments due to unfavorable policies and corruption scandals have all contributed to a fall of rupee. \u00a0The Indian rupee mostly traded in the range of 56INR to a dollar in May 2012. Then it recovered a bit in June.<\/p>\n However, on June 18, 20012, the Indian rupee weakened further after\u00a0 credit rating agency, Fitch Ratings cut India’s sovereign outlook to “negative” from “stable”, but confirmed the country at “BBB-“, the lowest investment-grade rating.<\/p>\n The negative rating from Fitch was followed by Standard & Poor’s outlook cut in April \u00a02012.<\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":" The Indian Rupee is the official currency of the Republic of India. The international code of Indian Rupee is INR […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[156],"tags":[99],"class_list":["post-477","post","type-post","status-publish","format-standard","hentry","category-currency","tag-forex"],"_links":{"self":[{"href":"https:\/\/www2.stockmarketwatch.com\/learn\/wp-json\/wp\/v2\/posts\/477","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www2.stockmarketwatch.com\/learn\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www2.stockmarketwatch.com\/learn\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/learn\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/learn\/wp-json\/wp\/v2\/comments?post=477"}],"version-history":[{"count":0,"href":"https:\/\/www2.stockmarketwatch.com\/learn\/wp-json\/wp\/v2\/posts\/477\/revisions"}],"wp:attachment":[{"href":"https:\/\/www2.stockmarketwatch.com\/learn\/wp-json\/wp\/v2\/media?parent=477"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/learn\/wp-json\/wp\/v2\/categories?post=477"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/learn\/wp-json\/wp\/v2\/tags?post=477"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\n
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\n Indian semantic<\/strong><\/td>\n International semantic<\/strong><\/td>\n Indian comma placement<\/strong><\/td>\n International comma placement<\/strong><\/td>\n<\/tr>\n \n 1 Lakh<\/td>\n 1 Hundred Thousand<\/td>\n 1,00,000<\/td>\n 100,000<\/td>\n<\/tr>\n \n 10 Lakhs<\/td>\n 1 Million<\/td>\n 10,00,000<\/td>\n 1,000,000<\/td>\n<\/tr>\n \n 1 Crore<\/td>\n 10 Million<\/td>\n 1,00,00,000<\/td>\n 10,000,000<\/td>\n<\/tr>\n \n 10 Crore<\/td>\n 100 Million<\/td>\n 10,00,00,000<\/td>\n 100,000,000<\/td>\n<\/tr>\n \n 1 Sael(Arab)<\/td>\n 1 Billion<\/td>\n 1,00,00,00,000<\/td>\n 1,000,000,000<\/td>\n<\/tr>\n \n 10 Sael(Kharab)<\/td>\n 10 Billion<\/td>\n 10,00,00,00,000<\/td>\n 10,000,000,000<\/td>\n<\/tr>\n \n 100 Sael(Marab)<\/td>\n 100 Billion<\/td>\n 1,00,00,00,00,000<\/td>\n 100,000,000,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n \n
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\n Value<\/td>\n Diameter<\/td>\n Mass<\/td>\n Composition<\/td>\n Shape<\/td>\n Obverse<\/td>\n Reverse<\/td>\n First Mining<\/td>\n<\/tr>\n \n 50<\/td>\n 19mm<\/td>\n 3.79g<\/td>\n Ferritic Stainless steel<\/td>\n Circular<\/td>\n Emblem of India<\/td>\n Value, the word “PAISE” in English and Hindi, floral motif and year of minting<\/td>\n 2011<\/td>\n<\/tr>\n \n 50<\/td>\n 22mm<\/td>\n 3.79g<\/td>\n Ferritic stainless steel<\/td>\n Circular<\/td>\n Emblem of India<\/td>\n Value, hand in a fist<\/td>\n 2008<\/td>\n<\/tr>\n \n 1<\/td>\n 25mm<\/td>\n 4.85g<\/td>\n Ferritic stainless steel<\/td>\n Circular<\/td>\n Emblem of India<\/td>\n Value, two stalks of\u00a0wheat<\/td>\n 1992<\/td>\n<\/tr>\n \n 1<\/td>\n 25mm<\/td>\n 4.85g<\/td>\n Ferritic stainless steel<\/td>\n Circular<\/td>\n Emblem of India<\/td>\n Value, hand showing thumb<\/td>\n 2007<\/td>\n<\/tr>\n \n 1<\/td>\n 22mm<\/td>\n 4.85g<\/td>\n Ferritic stainless steel<\/td>\n Circular<\/td>\n Emblem of India<\/td>\n Value, new rupee sign, floral motif and year of minting<\/td>\n 2011<\/td>\n<\/tr>\n \n 2<\/td>\n 26mm<\/td>\n 6g<\/td>\n Cupro Nickel<\/td>\n 11 sided<\/td>\n Emblem of India and value<\/td>\n National integration<\/td>\n 1982<\/td>\n<\/tr>\n \n 2<\/td>\n 27mm<\/td>\n 5.62g<\/td>\n Ferritic stainless steel<\/td>\n Circular<\/td>\n Emblem of India and year of minting<\/td>\n Value, hand showing two fingers<\/td>\n 2007<\/td>\n<\/tr>\n \n 2<\/td>\n 25mm<\/td>\n 5.62g<\/td>\n Ferritic stainless steel<\/td>\n Circular<\/td>\n Emblem of India<\/td>\n Value, new rupee sign, floral motif and year of minting<\/td>\n 2011<\/td>\n<\/tr>\n \n 5<\/td>\n 23mm<\/td>\n 9g<\/td>\n Cupro-Nickel<\/td>\n Circular<\/td>\n Emblem of India<\/td>\n Value<\/td>\n 1992<\/td>\n<\/tr>\n \n 5<\/td>\n 23mm<\/td>\n 6g<\/td>\n Ferritic Stainless Steel<\/td>\n Circular<\/td>\n Emblem of India<\/td>\n Value, wavy lines<\/td>\n 2007<\/td>\n<\/tr>\n \n 5<\/td>\n 23mm<\/td>\n 6g<\/td>\n Brass<\/td>\n Circular<\/td>\n Emblem of India<\/td>\n Value, wavy lines<\/td>\n 2009<\/td>\n<\/tr>\n \n 5<\/td>\n 23mm<\/td>\n 6g<\/td>\n Nickel Brass<\/td>\n Circular<\/td>\n Emblem of India<\/td>\n Value, new rupee sign, floral motif and year of minting<\/td>\n 2011<\/td>\n<\/tr>\n \n 10<\/td>\n 28mm<\/td>\n 8g<\/td>\n Bimetallic<\/td>\n Circular<\/td>\n Emblem of India and value<\/td>\n Value, wavy lines<\/td>\n 2006<\/td>\n<\/tr>\n \n 10<\/td>\n 27mm<\/td>\n 5.62g<\/td>\n Cupro-Nickel<\/td>\n Circular<\/td>\n Emblem of India and Year of minting<\/td>\n Value with outward radiating pattern, new rupee sign<\/td>\n 2011<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n \n
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