Indian rupee

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Indian rupee
रुपया (Hindi)
Indian Rupee symbol.svg
ISO 4217 code INR
Central bank Reserve Bank of India
Official user(s)  India
 Bhutan[a]
Unofficial user(s)    Nepal[b]
 Zimbabwe
Inflation 4.8%, August 2015
 Source Economic Adviser
 Method WPI
Pegged by Bhutanese ngultrum (at par)
Nepalese rupee (1 INR = 1.6 NPR)
Subunit
 1/100 Paisa
Symbol
Paisa p
 Formerly used symbols Rs, ರೂ, രൂ, ৳, ૱, రూ, ௹, रु
Coins 1, 2, 5, 10
Banknotes 5, 10, 20, 50, 100, 500, 1000
Printer Reserve Bank of India
 Website www.rbi.org.in
Mint India Government Mint
 Website www.spmcil.com

The rupee, or more specifically the Indian rupee (symbol: ₹; ISO code: INR) (Unicode U+20B9) is the official currency of the Republic of India. The issuance of the currency is controlled by the Reserve Bank of India.[1] It is named after the silver coin, rupiya, first issued by Sher Shah Suri in the 16th century later continued by the Mughal Empire.

The modern rupee is subdivided into 100 paise (singular paisa), though as of 2011 only 50 paise coins are legal tender.[2][3] Banknotes in circulation come in denominations of 1, 2, 5, 10, 20, 50, 100, 500 and 1000. Rupee coins are available in denominations of 1, 2, 5, 10.

The Indian rupee symbol '' (officially adopted in 2010) is derived from the Devanagari consonant "" (ra) and the Latin letter "R". The first series of coins with the rupee symbol was launched on 8 July 2011.[citation needed]

The Reserve Bank manages currency in India and derives its role in currency management on the basis of the Reserve Bank of India Act, 1934. Recently RBI launched a website Paisa Bolta Hai[4] to raise awareness of counterfeit currency among users of the INR.

Etymology[edit]

The word "rupee" was derived from the Sanskrit word रूप्यकम् (rūpyakam).[citation needed] The modern Indian rupee has a direct lineage from the rupiya, the silver coin, issued by Sher Shah Suri (1540—1545), continued by the Mughal rulers.[5]

  1. Assamese: টকা (ṭôkā)
  2. Bengali: টাকা (ṭākā)
  3. Bhojpuri: रुपया (rupayā)
  4. Gujarati: રૂપિયો (rupiyo)
  5. Hindi: रुपय (rupay)
  6. Kannada: ರೂಪಾಯಿ (rūpāyi)
  7. Kashmiri: روپے (ropyih)
  8. Konkani: रुपय (rupaye)
  9. Malayalam: രൂപ (rūpā)
  10. Marathi: रुपया (rupayā)
  11. Nepali: रुपैयाँ (rupaiyã)
  12. Odia: ଟଙ୍କା (ṭaṅkā)
  13. Punjabi: ਰੁਪਈਆ (rupiā)
  14. Rajasthani: रिप्या (ripyā)
  15. Sanskrit: रूप्यकम् (rūpyakam)
  16. Santali: ᱴᱟᱠᱟ (ṭākā)
  17. Sindhi: रुपियो‎ (rupiyo)
  18. Tamil: ரூபாய் (rūpāy)
  19. Telugu: రూపాయి (rūpāyi)
  20. Urdu: روپیہ‎ (rupayā)

However, in Assam, West Bengal, Tripura and Odisha, the Indian rupee is officially known by names derived from the Sanskrit word टङ्क (ṭaṅka), which means "money".[6] Thus, the rupee is called টকা (ṭôkā) in Assamese, টাকা (ṭākā) in Bengali and ଟଙ୍କା (ṭaṅkā) in Odia. The amount (and the word "rupee") is, accordingly, written on the front of Indian banknotes in English and Hindi, whilst on the back the name is listed, in English alphabetical order,[7] in 15 other Indian languages[8]

Design[edit]

Main article: Indian rupee sign

The sign () is a combination of the Devanagari letter "" (ra) and the Latin capital letter "R" without its vertical bar (similar to the R rotunda). The parallel lines at the top (with white space between them) are said to make an allusion to the tricolour Indian flag.[9] and also depict an equality sign that symbolises the nation's desire to reduce economic disparity. It was designed by Udaya Kumar Dharmalingam, at the Industrial Design Centre at the Indian Institute of Technology Bombay.

Numeral system[edit]

The Indian numeral system is based on the decimal system, with two notable differences from Western systems using long and short scales. The system is ingrained in everyday monetary transactions in the Indian subcontinent.

Tamil semantic Hindi semantic International semantic Indian comma placement International comma placement
ஆயிரம் 1 हज़ार(1 hazar) 1 thousand 1,000 1,000
பத்தாயிரம் 10 हज़ार(10 hazar) 10 thousand 10,000 10,000
நூறாயிரம் 1 लाख(1 lakh) 100 thousand 1,00,000 100,000
பத்து நூறாயிரம் 10 लाख(10 lakhs) 1 million 10,00,000 1,000,000
கோடி 1 करोड़(1 crore) 10 million 1,00,00,000 10,000,000
அற்புதம் 10 करोड़(10 crores) 100 million 10,00,00,000 100,000,000
நிகற்புதம் 1 अरब(1 arab) 1 billion 1,00,00,00,000 1,000,000,000
கும்பம் 10 अरब(10 arabs) 10 billion 10,00,00,00,000 10,000,000,000
கணம் 1 खरब(1 kharab) 100 billion 1,00,00,00,00,000 100,000,000,000
கற்பம் 10 खरब(10 kharabs) 1 trillion 10,00,00,00,00,000 1,000,000,000,000
நிகற்பம் 1 नील(1 neel) 10 trillion 1,00,00,00,00,00,000 10,000,000,000,000
பதுமம் 10 नील(10 neel) 100 trillion 10,00,00,00,00,00,000 100,000,000,000,000
சங்கம் 1 पद्दम(1 padam) 1 quadrillion 1,00,00,00,00,00,00,000 1,000,000,000,000,000
வெள்ளம் 10 पद्दम(10 padams) 10 quadrillion 10,00,00,00,00,00,00,000 10,000,000,000,000,000
அந்நியம் 1 शंख(1 shankh) 100 quadrillion 1,00,00,00,00,00,00,00,000 100,000,000,000,000,000
அற்ட்டம் 10 शंख(10 shankhs) 1 quintillion 10,00,00,00,00,00,00,00,000 1,000,000,000,000,000,000
  • Note that in practice, use of arab, kharab, neel, padam and shankh is rare. In modern usage, 1 arab would be 100 crores.

History[edit]

Main article: History of the rupee

Indian rupee[edit]

Silver punch mark coin of the Maurya empire, known as Rūpyarūpa, 3rd century BCE.

Historically, the rupee (derived from the Sanskrit word raupya), was a silver coin. This had severe consequences in the nineteenth century, when the strongest economies in the world were on the gold standard. The discovery of large quantities of silver in the United States and several European colonies resulted in a decline in the value of silver relative to gold, devaluing India's standard currency. This event was known as "the fall of the rupee."

The history of the Indian rupee traces back to Ancient India in circa 6th century BCE, ancient India was one of the earliest issuers of coins in the world,[10] along with the Chinese wen and Lydian staters.

The Hindi word rupaya is derived from Sanskrit word rūpya, which means "wrought silver, a coin of silver",[11] in origin an adjective meaning "shapely", with a more specific meaning of "stamped, impressed", whence "coin". It is derived from the noun rūpa "shape, likeness, image". The word rūpa is being further identified as having sprung from the Dravidian".

Arthashastra, written by Chanakya, prime minister to the first Maurya emperor Chandragupta Maurya (c 340-290 BCE), mentions silver coins as rūpyarupa, other types of coins including gold coins (Suvarṇarūpa), copper coins (Tāmrarūpa) and lead coins (Sīsarūpa) are also mentioned. Rūpa means form or shape, example, Rūpyarūpa, rūpya — wrought silver, rūpa — form.[12]

During his five-year rule from 1540 to 1545, Afghan king Sher Shah Suri issued a coin of silver, weighing 178 grains, which was termed the Rupiya.[11][13] The silver coin remained in use during the Mughal period, Maratha era as well as in British India.[14] Among the earliest issues of paper rupees include; the Bank of Hindustan (1770–1832), the General Bank of Bengal and Bihar (1773–75, established by Warren Hastings), and the Bengal Bank (1784–91).

Silver coins with raised writing
Rupiya issued by Sher Shah Suri, 1540–1545 CE

India was unaffected by the imperial order-in-council of 1825, which attempted to introduce British sterling coinage to the British colonies. British India, at that time, was controlled by the British East India Company. The silver rupee continued as the currency of India through the British Raj and beyond. In 1835, British India adopted a mono-metallic silver standard based on the rupee; this decision was influenced by a letter written by Lord Liverpool in 1805 extolling the virtues of mono-metallism.

Following the Indian Mutiny in 1857, the British government took direct control of British India. Since 1851, gold sovereigns were produced en masse at the Royal Mint in Sydney, New South Wales. In an 1864 attempt to make the British gold sovereign the "imperial coin", the treasuries in Bombay and Calcutta were instructed to receive gold sovereigns; however, these gold sovereigns never left the vaults. As the British government gave up hope of replacing the rupee in India with the pound sterling, it realised for the same reason it could not replace the silver dollar in the Straits Settlements with the Indian rupee (as the British East India Company had desired).

Since the silver crisis of 1873, a number of nations adopted the gold standard; however, India remained on the silver standard until it was replaced by a basket of commodities and currencies in the late 20th century.[citation needed]

The Indian rupee replaced the Danish Indian rupee in 1845, the French Indian rupee in 1954 and the Portuguese Indian escudo in 1961. Following the independence of British India in 1947 and the accession of the princely states to the new Union, the Indian rupee replaced all the currencies of the previously autonomous states (although the Hyderabadi rupee was not demonetised until 1959).[15] Some of the states had issued rupees equal to those issued by the British (such as the Travancore rupee). Other currencies (including the Hyderabadi rupee and the Kutch kori) had different values.

Old one-rupee note
One-rupee banknote
Government of India-1 Rupee (1917)

The values of the subdivisions of the rupee during British rule (and in the first decade of independence) were:

  • 1 rupee = 16 anna (later 100 naye paise)
  • 1 ardharupee = 8 anna, or ½ rupee (later 50 naye paise)
  • 1 pavala = 4 anna, or ¼ rupee (later 25 naye paise)
  • 1 beda = 2 anna, or 18 rupee (later equivalent to 12.5 naye paise)
  • 1 anna = 116 rupee (later equivalent to 6.25 naye paise)
  • 1 paraka = ½ anna (later equivalent to 3.125 naye paise)
  • 1 kani (pice) = ¼ anna (later equivalent to 1.5625 naye paise)
  • 1 damari (pie) = 112 anna (later equivalent to 0.520833 naye paise)
  • 1 rupee = 16 anna
  • 1 Athanni (dheli) = ½ rupee
  • 1 Chawanni = ¼ rupee
  • 1 Dawanni = 18 rupee
  • 1 Anna/Ekanni = 116 rupee
  • 1 Taka/Adhanni = 132 rupee
  • Paisa = 164 rupee
  • Dhela = 1128 rupee (½ paisa)
  • Pie = 13 paisa = 1192 rupee
  • Damari = ¼ paisa = 1256 rupee.

In 1957, the rupee was decimalised and divided into 100 naye paise (Hindi for "new paise"); in 1964, the initial "naye" was dropped. Many still refer to 25, 50 and 75 paise as 4, 8 and 12 annas respectively, similar to the usage of "two bits" in American English for a quarter-dollar.

Straits Settlements[edit]

The Straits Settlements were originally an outlier of the British East India Company. The Spanish dollar had already taken hold in the Settlements by the time the British arrived during the 19th century; however, the East India Company tried to replace it with the rupee. This attempt was resisted by the locals; by 1867 (when the British government took over direct control of the Straits Settlements from the East India Company), attempts to introduce the rupee were finally abandoned.

International use[edit]

See also: Pakistani rupee

With the Partition the Pakistani rupee came into existence, initially using Indian coins and Indian currency notes simply overstamped with "Pakistan". Previously the Indian rupee was an official currency of other countries, including Aden, Oman, Dubai, Kuwait, Bahrain, Qatar, the Trucial States, Kenya, Tanganyika, Uganda, the Seychelles and Mauritius.

The Indian government introduced the Gulf rupee – also known as the Persian Gulf rupee (XPGR) – as a replacement for the Indian rupee for circulation outside the country with the Reserve Bank of India (Amendment) Act of 1 May 1959. The creation of a separate currency was an attempt to reduce the strain on India's foreign reserves from gold smuggling. After India devalued the rupee on 6 June 1966, those countries still using it – Oman, Qatar, and the Trucial States (which became the United Arab Emirates in 1971) – replaced the Gulf rupee with their own currencies. Kuwait and Bahrain had already done so in 1961 and 1965, respectively.[16]

The Bhutanese ngultrum is pegged at par with the Indian rupee; both currencies are accepted in Bhutan. The Nepalese rupee is pegged at 0.625; the Indian rupee is accepted in Nepal, except 500 and 1000 banknotes, which are not legal tender in Nepal and is banned by the Government of Nepal, though accepted by many retailers.[17] Sri Lanka's rupee is not currently related to that of India; it is pegged to the US dollar.[18]

In 2014, Zimbabwe added the Indian Rupee as a legal tender to be used.[19]

Coins[edit]

Main article: Modern Indian coins

East India Company, 1835[edit]

The three Presidencies established by the British East India Company (Bengal, Bombay and Madras) each issued their own coinages until 1835. All three issued rupees and fractions thereof down to 18- and 116-rupee in silver. Madras also issued two-rupee coins.

Copper denominations were more varied. Bengal issued one-pie, 12-, one- and two-paise coins. Bombay issued 1-pie, 14-, 12-, 1-, 112-, 2- and 4-paise coins. In Madras there were copper coins for two and four pies and one, two and four paisa, with the first two denominated as 12 and one dub (or 196 and 148) rupee. Madras also issued the Madras fanam until 1815.

1835 East India Company 2 Mohurs

All three Presidencies issued gold mohurs and fractions of mohurs including 116, 12, 14 in Bengal, 115 (a gold rupee) and 13 (pancia) in Bombay and 14, 13 and 12 in Madras.

In 1835, a single coinage for the EIC was introduced. It consisted of copper 112, 14 and 12 anna, silver 14, 13 and 1 rupee and gold 1 and 2 mohurs. In 1841, silver 2 annas were added, followed by copper 12 pice in 1853. The coinage of the EIC continued to be issued until 1862, even after the Company had been taken over by the Crown.

Regal issues, 1862–1947[edit]

1862 India One Mohur
Regal issue minted during the reign of King/Emperor George V.

In 1862, coins were introduced (known as "regal issues") which bore the portrait of Queen Victoria and the designation "India". Their denominations were 112 anna, 12 pice, 14 and 12 anna (all in copper), 2 annas, 14, 12 and one rupee (silver), and five and ten rupees and one mohur (gold). The gold denominations ceased production in 1891, and no 12-anna coins were issued after 1877.

In 1906, bronze replaced copper for the lowest three denominations; in 1907, a cupro-nickel one-anna coin was introduced. In 1918–1919 cupro-nickel two-, four- and eight-annas were introduced, although the four- and eight-annas coins were only issued until 1921 and did not replace their silver equivalents. In 1918, the Bombay mint also struck gold sovereigns and 15-rupee coins identical in size to the sovereigns as an emergency measure during the First World War.

In the early 1940s, several changes were implemented. The 112 anna and 12 pice ceased production, the 14 anna was changed to a bronze, holed coin, cupro-nickel and nickel-brass 12-anna coins were introduced, nickel-brass was used to produce some one- and two-annas coins, and the silver composition was reduced from 91.7 to 50 percent. The last of the regal issues were cupro-nickel 14-, 12- and one-rupee pieces minted in 1946 and 1947, bearing the image of George VI, King and Emperor on the obverse and an Indian tiger on the reverse.

Independent predecimal issues, 1950–1957[edit]

Both sides of copper-coloured coin
Indian one pice, minted in 1950

India's first coins after independence were issued in 1950 in 1 pice, 12, one and two annas, 14, 12 and one-rupee denominations. The sizes and composition were the same as the final regal issues, except for the one-pice (which was bronze, but not holed).

Independent decimal issues, 1957–[edit]

Row of six differently-shaped aluminium coins, arranged by size
In 1964, India introduced aluminium coins for denominations up to 20p.

The first decimal-coin issues in India consisted of 1, 2, 5, 10, 25 and 50 naye paise, and 1 rupee. The 1 naya paisa was bronze; the 2, 5 & 10 naye paise were cupro-nickel, and the 25 naye paise (nicknamed chawanni; 25 naye paise equals 4 annas), 50 naye paise (also called athanni; 50 naye paise equalled 8 old annas) and 1-rupee coins were nickel. In 1964, the word naya(e) was removed from all coins. Between 1964 and 1967, aluminium one-, two-, three-, five- and ten-paise coins were introduced. In 1968 nickel-brass 20-paise coins were introduced, and replaced by aluminium coins in 1982. Between 1972 and 1975, cupro-nickel replaced nickel in the 25- and 50-paise and the 1-rupee coins; in 1982, cupro-nickel two-rupee coins were introduced. In 1988 stainless steel 10-, 25- and 50-paise coins were introduced, followed by 1- and 5-rupee coins in 1992. Five-rupee coins, made from brass, are being minted by the Reserve Bank of India (RBI).

Between 2005 and 2008 new, lighter fifty-paise, one-, two- and five-rupee coins were introduced, made from ferritic stainless steel. The move was prompted by the melting-down of older coins, whose face value was less than their scrap value. The demonetisation of the 25-(chawanni) paise coin and all paise coins below it took place, and a new series of coins (50 paise – nicknamed athanni – one, two, five and ten rupees, with the new rupee symbol) were put into circulation in 2011. Coins commonly in circulation are one, two, five and ten rupees.[20][21] Although it is still legal tender, the 50-paise (athanni) coin is rarely seen in circulation.[22]

Circulating Coins [20][23]
Value Technical parameters Description Year of
Diameter Mass Composition Shape Obverse Reverse First minting Last minting
50 paise 19 mm 3.79 g Ferritic stainless steel Circular Emblem of India Value, the word "PAISE" in English and Hindi, floral motif and year of minting 2011
50 paise 22 mm 3.79 g Ferritic stainless steel Circular Emblem of India Value, hand in a fist 2008
1 25 mm 4.85 g Ferritic stainless steel Circular Emblem of India, value Value, two stalks of wheat 1992
1 25 mm 4.85 g Ferritic stainless steel Circular Emblem of India Value, hand showing thumb (an expression in the Bharata Natyam Dance) 2007
1 22 mm 3.79 g Ferritic stainless steel Circular Emblem of India Value, new rupee sign, floral motif and year of minting 2011
2 26 mm 6 g Cupro-Nickel Eleven Sided Emblem of India, Value National integration 1982
2 27 mm 5.62 g Ferritic stainless steel Circular Emblem of India, year of minting Value, hand showing two fingers (Hasta Mudra — hand gesture from the dance Bharata Natyam) 2007
2 25 mm 4.85 g Ferritic stainless steel Circular Emblem of India Value, new rupee sign, floral motif and year of minting 2011
5 23 mm 9 g Cupro-Nickel Circular Emblem of India Value 1992
5 23 mm 6 g Ferritic stainless steel Circular Emblem of India Value, wavy lines 2007
5 23 mm 6 g Brass Circular Emblem of India Value, wavy lines 2009
5 23 mm 6 g Nickel- Brass Circular Emblem of India Value, new rupee sign, floral motif and year of minting 2011
10 27 mm 5.62 g Bimetallic Circular Emblem of India with value Value, wavy lines 2006
10 27 mm 5.62 g Bimetallic Circular Emblem of India and year of minting Value with outward radiating pattern, new rupee sign 2011

The coins are minted at the four locations of the India Government Mint. The 1, 2, and 5 coins have been minted since independence. Coins minted with the "hand picture" were minted from 2005 onwards.

Special coins[edit]

After independence, the Government of India mint, minted coins imprinted with Indian statesmen, historical and religious figures. In year 2010 and 2011 for the first time ever 75, 150 and 1000 coins were minted in India to commemorate the Platinum Jubilee of the Reserve Bank of India, the 150th birth anniversary of Rabindra Nath Tagore and 1000 years of the Brihadeeswarar Temple, respectively. In 2012 a 60 coin was also issued to commemorate 60 years of the Government of India Mint, Kolkata. 100 coin was also released commemorating the 100th anniversary of Mahatma Gandhi's return to India.[24]

Banknotes[edit]

The design of banknotes is approved by the central government, on the recommendation of the central board of the Reserve Bank of India.[1] Currency notes are printed at the Currency Note Press in Nashik, the Bank Note Press in Dewas, the Bharatiya Reserve Bank Note Mudran (P) Ltd at Salboni and Mysore and at the Watermark Paper Manufacturing Mill in Hoshangabad.

The current series of banknotes (which began in 1996) is known as the Mahatma Gandhi series. Banknotes are issued in the denominations of 5, 10, 20, 50, 100, 500 and 1000. The printing of 5 notes (which had stopped earlier) resumed in 2009. ATMs usually distribute 100, 500 and 1,000 notes. The zero rupee note is not an official government issue, but a symbol of protest; it is printed (and distributed) by an NGO in India.

British India[edit]

Government of India-10 Rupees (1910)
Old 1 rupee note
British Indian one rupee note

In 1861, the government of India introduced its first paper money: 10 notes in 1864, 5 notes in 1872, 10,000 notes in 1899, 100 notes in 1900, 50-rupee notes in 1905, 500-rupee notes in 1907 and 1000-rupee notes in 1909. In 1917, 1- and 212-rupee notes were introduced. The Reserve Bank of India began banknote production in 1938, issuing 2, 5, 10, 50, 100, 1,000 and 10,000 notes while the government continued issuing 1 notes.

Independent issues since 1949[edit]

After independence, new designs were introduced to replace the portrait of the king. The government continued issuing the 1note, while the Reserve Bank issued other denominations (including the 5,000 and 10,000 notes introduced in 1949). During the 1970s, 20 and 50 notes were introduced; denominations higher than 100 were demonetised in 1978. In 1987 the 500-rupee note was introduced, followed by the 1,000 note in 2000. 1 and 2 notes were discontinued in 1995.

In September 2009, the Reserve Bank of India decided to introduce polymer banknotes on a trial basis. Initially, 100 crore (1 billion) pieces of polymer 10 notes will be introduced.[25] According to Reserve Bank officials, the polymer notes will have an average lifespan of five years (four times that of paper banknotes) and will be difficult to counterfeit; they will also be cleaner than paper notes.

Current banknotes[edit]

List of Banknotes[edit]

Mahatma Gandhi Series [26]
Image Value Dimensions Main Color Description Year of issue
Obverse Reverse Obverse Reverse Watermark
1 rupee bill historical.jpg KGVI rupee 1 note reverse.jpg 1 97 × 63 mm Blue One-rupee coin Sagar Samrat oil rig Pillars of Ashoka 1994 / 2015[27][28]
5 INR Obs LR.png 5 INR Rev LR.png 5 117 × 63 mm Green Mahatma Gandhi Tractor Mahatma Gandhi 2002 / 2009
10 INR Obs LR.png 10 INR Rev LR.png 10 137 × 63 mm Orange-violet Rhinoceros, elephant, tiger 1996 / 2006
20 INR Obs LR.png 20 INR Rev LR.png 20 147 × 63 mm Red-orange Mount Harriet, Port Blair 2001 / 2006
50 INR Obs LR.png 50 INR Rev LR.png 50 147 × 73 mm Violet Parliament of India 1997 / 2005
100 INR Obs LR.png 100 INR Rev LR.png 100 157 × 73 mm Blue-green at centre, brown-purple at 2 sides Himalaya Mountains 1996 / 2005
500 INR Obs LR.png 500 INR Rev LR.png 500 167 × 73 mm Orange and Yellow Dandi March 2000 / 2005
1000 INR Obs LR.png 1000 INR Rev LR.png 1000 177 × 73 mm Amber-Red Economy of India 2000 / 2005
These images are to scale at 0.7 pixels per millimetre.

The Mahatma Gandhi series of banknotes are issued by the Reserve Bank of India as legal tender. The series is so named because the obverse of each note features a portrait of Mahatma Gandhi. Since its introduction in 1996, this series has replaced all issued banknotes. The RBI introduced the series in 1996 with 10 and 500 banknotes. At present, the RBI issues banknotes in denominations from 5 to 1,000. The printing of 5 notes (which had stopped earlier) resumed in 2009.

As of January 2012, the new '' sign has been incorporated into banknotes in denominations of 10, 20, 50, 100, 500 and 1,000.[29][30][31][32] In January, 2014 RBI announced that it would be withdrawing from circulation all currency notes printed prior to 2005 by 31 March 2014. The deadline was later extended to 1 January 2015.[33]

Languages[edit]

Each banknote has its amount written in 17 languages. On the obverse, the denomination is written in English and Hindi. On the reverse is a language panel which displays the denomination of the note in 15 of the 22 official languages of India. The languages are displayed in alphabetical order. Languages included on the panel are Assamese, Bengali, Gujarati, Kannada, Kashmiri, Konkani, Malayalam, Marathi, Nepali, Odia, Punjabi, Sanskrit, Tamil, Telugu and Urdu.

Denominations in central level official languages (At below either ends)
Language 1 2 5 10 20 50 100 500 1000
English One rupee Two rupees Five rupees Ten rupees Twenty rupees Fifty rupees Hundred rupees Five hundred rupees One thousand rupees
Hindi एक रुपया दो रुपये पाँच रुपये दस रुपये बीस रुपये पचास रुपये एक सौ रुपये पाँच सौ रुपये एक हज़ार रुपये
Denominations in other Indian languages as seen on panel
Language 1 2 5 10 20 50 100 500 1000
Assamese এক টকা দুই টকা পাঁচ টকা দহ টকা বিছ টকা পঞ্চাশ টকা এশ টকা পাঁচশ টকা এক হাজাৰ টকা
Bengali এক টাকা দুই টাকা পাঁচ টাকা দশ টাকা কুড়ি টাকা পঞ্চাশ টাকা একশত টাকা পাঁচশত টাকা এক হাজার টাকা
Gujarati એક રૂપિયો બે રૂપિયા પાંચ રૂપિયા દસ રૂપિયા વીસ રૂપિયા પચાસ રૂપિયા સો રૂપિયા પાંચ સો રૂપિયા એક હજાર રૂપિયા
Kannada ಒಂದು ರುಪಾಯಿ ಎರಡು ರೂಪಾಯಿಗಳು ಐದು ರೂಪಾಯಿಗಳು ಹತ್ತು ರೂಪಾಯಿಗಳು ಇಪ್ಪತ್ತು ರೂಪಾಯಿಗಳು ಐವತ್ತು ರೂಪಾಯಿಗಳು ನೂರು ರೂಪಾಯಿಗಳು ಐನೂರು ರೂಪಾಯಿಗಳು ಒಂದು ಸಾವಿರ ರೂಪಾಯಿಗಳು
Konkani एक रुपया दोन रुपया पांच रुपया धा रुपया वीस रुपया पन्नास रुपया शंबर रुपया पाचशें रुपया एक हज़ार रुपया
Malayalam ഒരു രൂപ രണ്ടു രൂപ അഞ്ചു രൂപ പത്തു രൂപ ഇരുപതു രൂപ അൻപതു രൂപ നൂറു രൂപ അഞ്ഞൂറു രൂപ ആയിരം രൂപ
Marathi एक रुपया दोन रुपये पाच रुपये दहा रुपये वीस रुपये पन्नास रुपये शंभर रुपये पाचशे रुपये एक हजार रुपये
Nepali एक रुपैयाँ दुई रुपियाँ पाँच रुपियाँ दस रुपियाँ बीस रुपियाँ पचास रुपियाँ एक सय रुपियाँ पाँच सय रुपियाँ एक हजार रुपियाँ
Odia ଏକ ଟଙ୍କା ଦୁଇ ଟଙ୍କା ପାଞ୍ଚ ଟଙ୍କା ଦଶ ଟଙ୍କା କୋଡିଏ ଟଙ୍କା ପଚାଶ ଟଙ୍କା ଏକ ଶତ ଟଙ୍କା ପାଞ୍ଚ ଶତ ଟଙ୍କା ଏକ ହଜାର ଟଙ୍କା
Punjabi ਇਕ ਰੁਪਈਆ ਦੋ ਰੁਪਏ ਪੰਜ ਰੁਪਏ ਦਸ ਰੁਪਏ ਵੀਹ ਰੁਪਏ ਪੰਜਾਹ ਰੁਪਏ ਇਕ ਸੌ ਰੁਪਏ ਪੰਜ ਸੌ ਰੁਪਏ ਇਕ ਹਜ਼ਾਰ ਰੁਪਏ
Sanskrit एकरूप्यकम् द्वे रूप्यके पञ्चरूप्यकाणि दशरूप्यकाणि विंशती रूप्यकाणि पञ्चाशत् रूप्यकाणि शतं रूप्यकाणि पञ्चशतं रूप्यकाणि सहस्रं रूप्यकाणि
Tamil ஒரு ரூபாய் இரண்டு ரூபாய் ஐந்து ரூபாய் பத்து ரூபாய் இருபது ரூபாய் ஐம்பது ரூபாய் நூறு ரூபாய் ஐந்நூறு ரூபாய் ஆயிரம் ரூபாய்
Telugu ఒక రూపాయి రెండు రూపాయలు ఐదు రూపాయలు పది రూపాయలు ఇరవై రూపాయలు యాభై రూపాయలు నూరు రూపాయలు ఐదువందల రూపాయలు వెయ్యి రూపాయలు
Urdu ایک روپیہ دو روپے پانچ روپے دس روپے بیس روپے پچاس روپے ایک سو روپے پانچ سو روپے ایک ہزار روپے

Minting[edit]

A postcard depicting the Mint.

The Government of India has the only right to mint the coins and one rupee note. The responsibility for coinage comes under the Coinage Act, 1906 which is amended from time to time. The designing and minting of coins in various denominations is also the responsibility of the Government of India. Coins are minted at the five India Government Mints at Mumbai, Alipore (Kolkata), Saifabad (Hyderabad), Cherlapally (Hyderabad) and NOIDA (UP). The coins are issued for circulation only through the Reserve Bank in terms of the RBI Act.[34]

Security features[edit]

The main security features of current banknotes are:

  • Watermark — White side panel of notes has Mahatma Gandhi watermark.
  • Security thread — All notes have a silver or green security band with inscriptions (visible when held against light) of Bharat in Hindi and "RBI" in English.
  • Latent image — On notes of denominations of 20 and upwards, a vertical band on the right side of the Mahatma Gandhi’s portrait contains a latent image showing the respective denominational value numerally (visible only when the note is held horizontally at eye level).
  • Microlettering — Numeral denominational value is visible under magnifying glass between security thread and latent image.
  • Intaglio - On notes with denominations of 5 and upwards the portrait of Mahatma Gandhi, the Reserve Bank seal, guarantee and promise clause, Ashoka Pillar Emblem on the left and the RBI Governor's signature are printed in intaglio (raised print).
  • Identification mark — On the left of the watermark window, different shapes are printed for various denominations 20: vertical rectangle, 50: square, 100: triangle, 500: circle, 1,000: diamond). This also helps the visually impaired to identify the denomination.
  • Fluorescence — Number panels glow under ultraviolet light.
  • Optically variable ink — Notes of 500 and 1,000 denominations have their numerals printed in optically variable ink. The number appears green when the note is held flat, but changes to blue when viewed at an angle.
  • See-through register - Floral designs printed on the front and the back of the note coincide and perfectly overlap each other when viewed against light.
  • EURion constellation - A pattern of symbols found on the banknote helps software detect the presence of a banknote in a digital image, preventing its reproduction with devices such as colour photocopiers.

Note: All bank note from 20 and above have a small raised geometrical shape for the visually impared. Although its not a security feature for the common people the visually impared may use it as a security feature. The downside is that through prolonged use the raised geometrical shape slowly becomes flat. Example include 500 has a small cicle shape,100 has a triangle shape,50 has a square shape, 20 has a rectangular shape and so on.

Convertibility[edit]

Most traded currencies by value
Currency distribution of global foreign exchange market turnover[35][36]
Rank Currency ISO 4217 code
(Symbol)
 % daily share
(April 2013)
1
United States dollar
USD ($)
87.0%
2
Euro
EUR (€)
33.4%
3
Japanese yen
JPY (¥)
23.0%
4
Pound sterling
GBP (£)
11.8%
5
Australian dollar
AUD ($)
8.6%
6
Swiss franc
CHF (Fr)
5.2%
7
Canadian dollar
CAD ($)
4.6%
8
Mexican peso
MXN ($)
2.5%
9
Chinese yuan
CNY (¥)
2.2%
10
New Zealand dollar
NZD ($)
2.0%
11
Swedish krona
SEK (kr)
1.8%
12
Russian ruble
RUB (₽)
1.6%
13
Hong Kong dollar
HKD ($)
1.4%
14
Norwegian krone
NOK (kr)
1.4%
15
Singapore dollar
SGD ($)
1.4%
16
Turkish lira
TRY (₺)
1.3%
17
South Korean won
KRW (₩)
1.2%
18
South African rand
ZAR (R)
1.1%
19
Brazilian real
BRL (R$)
1.1%
20
Indian rupee
INR (र.)
1.0%
Other 6.3%
Total[37] 200%

Officially, the Indian rupee has a market-determined exchange rate. However, the RBI trades actively in the USD/INR currency market to impact effective exchange rates. Thus, the currency regime in place for the Indian rupee with respect to the US dollar is a de facto controlled exchange rate. This is sometimes called a "managed float". Other rates (such as the EUR/INR and INR/JPY) have the volatility typical of floating exchange rates, and often create persistent arbitrage opportunities against the RBI.[38] Unlike China, successive administrations (through RBI, the central bank) have not followed a policy of pegging the INR to a specific foreign currency at a particular exchange rate. RBI intervention in currency markets is solely to ensure low volatility in exchange rates, and not to influence the rate (or direction) of the Indian rupee in relation to other currencies.[39]

Also affecting convertibility is a series of customs regulations restricting the import and export of rupees. Legally, foreign nationals are forbidden from importing or exporting rupees; Indian nationals can import and export only up to 7,500 at a time, and the possession of 500 and 1,000 rupee notes in Nepal is prohibited.[40][41] In 2014 India allowed to take 500 and 1000 rupee notes to be taken to Nepal

RBI also exercises a system of capital controls in addition to intervention (through active trading) in currency markets. On the current account, there are no currency-conversion restrictions hindering buying or selling foreign exchange (although trade barriers exist). On the capital account, foreign institutional investors have convertibility to bring money into and out of the country and buy securities (subject to quantitative restrictions). Local firms are able to take capital out of the country in order to expand globally. However, local households are restricted in their ability to diversify globally. Because of the expansion of the current and capital accounts, India is increasingly moving towards full de facto convertibility.

There is some confusion regarding the interchange of the currency with gold, but the system that India follows is that money cannot be exchanged for gold under any circumstances due to gold's lack of liquidity;[citation needed] therefore, money cannot be changed into gold by the RBI. India follows the same principle as Great Britain and the US.

Reserve Bank of India clarifies its position regarding the promissory clause printed on each banknote:

"As per Section 26 of Reserve Bank of India Act, 1934, the Bank is liable to pay the value of banknote. This is payable on demand by RBI, being the issuer. The Bank's obligation to pay the value of banknote does not arise out of a contract but out of statutory provisions.The promissory clause printed on the banknotes i.e., "I promise to pay the bearer an amount of X" is a statement which means that the banknote is a legal tender for X amount. The obligation on the part of the Bank is to exchange a banknote for coins of an equivalent amount." [42]

Chronology[edit]

  • 1991 – India began to lift restrictions on its currency. A number of reforms removed restrictions on current account transactions (including trade, interest payments and remittances and some capital asset-based transactions). Liberalised Exchange Rate Management System (LERMS) (a dual-exchange-rate system) introduced partial convertibility of the rupee in March 1992.[43]
  • 1997 – A panel (set up to explore capital account convertibility) recommended that India move towards full convertibility by 2000, but the timetable was abandoned in the wake of the 1997–1998 East Asian financial crisis.
  • 2006 – Prime Minister Manmohan Singh asked the Finance Minister and the Reserve Bank of India to prepare a road map for moving towards capital account convertibility.[44]

Exchange rates[edit]

Historic exchange rates[edit]

Graph of exchange rates of Indian rupee (INR) per 1 USD, 1 GBP, 1 EUR, 100 JPY averaged over the month, from September 1998 to May 2013. Data source: Reserve Bank of India reference rate

For almost a century since the Great Recoinage of 1816 until the outbreak of World War I, the Indian rupee sustained parity with the U.S. dollar while pegged to the pound sterling that was exchanged at 4.80 (or 50 old pence per rupee).

Thereafter, both the rupee and the sterling gradually declined in worth against the U.S. dollar due to deficits in trade, capital and budget. In 1966, the rupee was devalued and pegged to the dollar. The peg to the pound was at 13.33 to a pound (approx. 40 rupees to £3), and the pound itself was pegged to US$4.03. That means officially speaking the USD to INR rate would be closer to 4. In 1966, India changed the peg to dollar at 7.50.[45]

Indian rupees per currency unit averaged over the year[46][47]
Currency ISO code 1947 1966 1996 2000 2004 2006 2007 2008 2009 2010 2013 2014
U.S. dollar USD 3.30 7.50 35.444 44.2 45.340 43.954 39.5 48.76112 45.3354 45 68.80 66.07
Canadian dollar CAD 26.002 30.283 34.914 41.098 42.92026 44.5915 52.1706 49.53
Euroa EUR 44.401 41.525 56.385 64.127 68.03312 60.5973 65.6987 70.21
Pound sterling GBP 13.33 55.389 68.119 83.064 80.633 76.38023 71.3313 83.6329 94.52
Chinese Yuan Renminbi CNY 9.93
Swiss franc CHF 28 66.95
Singapore dollar SGD 25.160 26.07 26.830 30.932 33.60388 34.5127 41.2737 45.86
Malaysian Ringgit MYR 17.49
Japanese Yen JPY 0.56
Kuwaiti Dinar KWD 210.01
Bahraini Dinar BHD 164.55
a Before 1 January 1999, the European Currency Unit

Indian subcontinent exchange rates[edit]

The Indian subcontinent or the subcontinent is the southern region of Asia, mostly situated on the Indian Plate and projecting southwards into the Indian Ocean. Definitions of the extent of the Indian subcontinent differ but it usually includes the core lands of India, Pakistan, and Bangladesh;[1] Sri Lanka, Nepal and Bhutan are often included as well.

Indian rupees per currency unit averaged over the year[46][47]
Currency ISO code 1947 1966 1996 2000 2004 2006 2007 2008 2009 2010 2013 2014
Pakistani Rupee PKR 0.61
Bangladeshi Taka BDT 0.80
Sri Lankan Rupee LKR 0.47
Nepalese Rupee NPR 0.63
Bhutanese Ngultrum BTN 1.01

Banknotes and coins in circulation[edit]

As of 2014 banknotes of the denominations of 5, 10, 20, 50, 100, 500 and 1000 are in circulation; coins with face-value of 50 paise, 1, 2, 5 and 10 rupees. This is excluding the commemorative coins minted for special occasions.

Current exchange rates[edit]

Current INR exchange rates
From Google Finance: AUD CAD CHF EUR GBP HKD JPY USD RUB CNY KRW
From Yahoo! Finance: AUD CAD CHF EUR GBP HKD JPY USD RUB CNY KRW
From XE: AUD CAD CHF EUR GBP HKD JPY USD RUB CNY KRW
From OANDA: AUD CAD CHF EUR GBP HKD JPY USD RUB CNY KRW
From fxtop.com: AUD CAD CHF EUR GBP HKD JPY USD RUB CNY KRW
From Currency.Wiki: AUD CAD CHF EUR GBP HKD JPY USD RUB CNY KRW

See also[edit]

Notes[edit]

  1. ^ Alongside the Bhutanese ngultrum
  2. ^ Alongside the Nepalese rupee

References[edit]

  1. ^ a b "Reserve Bank of India FAQ — Your Guide to Money Matters". Rbi.org.in. Retrieved 2014-11-05. 
  2. ^ "25 paise and below coins not acceptable from June 30 - The Times of India". Times of India. 30 December 2010. Retrieved 2011-01-26. 
  3. ^ "Govt to scrap 25 paise coins". NDTV. Retrieved 2011-01-26. 
  4. ^ "Reserve Bank of India". rbi.org.in. 
  5. ^ "Mughal Coinage". Sher Shah issued a coin of silver which was termed the Rupiya. This weighed 178 grains and was the precursor of the modern rupee. It remained largely unchanged till the early 20th Century 
  6. ^ Klaus Glashoff. "Meaning of टङ्क (Tanka)". Spokensanskrit.de. Retrieved 2011-11-05. 
  7. ^ "Languages on the rupee". Ccat.sas.upenn.edu. Retrieved 2013-05-28. 
  8. ^ Languages on Indian currency notes | kaulonline | BLOG. kaulonline (2007-02-11). Retrieved on 2013-07-28.
  9. ^ "Indian Rupee Joins Elite Currency Club". Theworldreporter.com. 2010-07-17. 
  10. ^ Subodh Kapoor (January 2002). The Indian encyclopaedia: biographical, historical, religious ..., Volume 6. Cosmo Publications. p. 1599. ISBN 81-7755-257-0. 
  11. ^ a b etymonline.com (20 September 2008). "Etymology of rupee". Retrieved 2008-09-20. 
  12. ^ Redy. "AIndia.htm". Worldcoincatalog.com. Retrieved 2013-06-20. 
  13. ^ Mughal Coinage at RBI Monetary Museum. Retrieved on 4 May 2008.
  14. ^ "Coinage — Pre-Colonial India Coinage". Rbi.org.in. Retrieved 2013-06-20. 
  15. ^ Rezwan Razack and Kishore Jhunjhunwalla (2012). The Revised Standard Reference Guide to Indian Paper Money. Coins & Currencies. ISBN 978-81-89752-15-6. 
  16. ^ "Internationalisation of currency: the case of the Indian rupee and Chinese renminbi" (PDF). Rib staff studies. Retrieved 2010-03-01. 
  17. ^ "Don't take 1,000 and 500 Indian rupee notes to Nepal". Rib staff studies. Retrieved 2014-10-27. 
  18. ^ "Sri Lanka bank liquid assets shrink amid peg defence". Forum.srilankaequity.com. Retrieved 2013-05-28. 
  19. ^ "Zimbabwe’s multi-currency confusion". BBC News. 
  20. ^ a b "Issue of new series of Coins". RBI. Retrieved 4 November 2011. 
  21. ^ "This numismatist lays hands on coins with Rupee symbol". Times of India. 29 August 2011. Retrieved 4 November 2011. 
  22. ^ "Coins of 25 paise and below will not be Legal Tender from June 30, 2011 : RBI appeals to Public to Exchange them upto June 29, 2011". RBI. 18 May 2011. Retrieved 23 January 2012. 
  23. ^ "Reserve Bank of India — Coins". Rbi.org.in. Retrieved 2011-11-05. 
  24. ^ Gaikwad, Rahi (9 January 2015). "India, South Africa discuss UNSC reforms". The Hindu (Chennai, India). Retrieved 9 January 2015. 
  25. ^ "RBI to introduce Rs.10 plastic notes". Hindustan Times. 2009-09-08. Retrieved 2009-09-08. 
  26. ^ "Reserve Bank of India — Bank Notes". Rbi.org.in. Retrieved 2011-11-05. 
  27. ^ "Printing of One Rupee Currency Notes Rules, 2015". The Dollar Business. 
  28. ^ India new 1-rupee note dated 2015 confirmed BanknoteNews.com. 25 May 2015. Retrieved on 2015-05-26.
  29. ^ "Issue of ` 10/- Banknotes with incorporation of Rupee symbol (`)". RBI. Retrieved 23 January 2012. 
  30. ^ "Issue of ` 500 Banknotes with incorporation of Rupee symbol". RBI. Retrieved 23 January 2012. 
  31. ^ "Issue of ` 1000 Banknotes with incorporation of Rupee symbol". RBI. Retrieved 23 January 2012. 
  32. ^ "Issue of `100 Banknotes with incorporation of Rupee symbol". RBI. Retrieved 23 January 2012. 
  33. ^ "Withdrawal of Currencies Issued Prior to 2005". Press Information Bureau. 25 July 2014. Retrieved 25 July 2014. 
  34. ^ Reserve Bank of India - Coins. Rbi.org.in. Retrieved on 2013-07-28.
  35. ^ "World’s Most Traded Currencies By Value 2012". investopedia.com. Retrieved 10 June 2013. 
  36. ^ "Report on global foreign exchange market activity in 2013" (PDF). Triennial Central Bank Survey. Basel, Switzerland: Bank for International Settlements. April 2013. p. 12. Retrieved 22 October 2013. 
  37. ^ The total sum is 200% because each currency trade always involves a currency pair.
  38. ^ "Convertibility: Patnaik, 2004" (PDF)
  39. ^ Chandra, Shobhana (2007-09-26). "'Neither the government nor the central bank takes a view on the rupee (exchange rate movements), as long as the movement is orderly', says Indian Minister of Finance". Bloomberg.com. Retrieved 2011-11-05. 
  40. ^ "RBI Master Circular on Import of Goods and Services". Rbi.org.in. Retrieved 2013-08-25. 
  41. ^ "RBI Master Circular on Export of Goods and Services". Rbi.org.in. Retrieved 2013-08-25. 
  42. ^ Reserve bank of India Frequently Asked Questions rbi.org.in Retrieved 2013-08-27
  43. ^ Rituparna Kar and Nityananda Sarkar: Mean and volatility dynamics of Indian rupee/US dollar exchange rate series: an empirical investigation in Asia-Pacific Finan Markets (2006) 13:41–69, p. 48. DOI 10.1007/s10690-007-9034-0 .
  44. ^ "The "Fuller Capital Account Convertibility Report"" (PDF). 2006-07-31. Retrieved 2009-01-23. 
  45. ^ Saurabh Chandra (21 August 2013). "The fallacy of 'dollar = rupee' in 1947". Retrieved 22 August 2013. 
  46. ^ a b "FXHistory: historical currency exchange rates" (database). OANDA Corporation. Archived from the original on 2006-04-03. Retrieved 2009-09-01. 
  47. ^ a b "The fallacy of 'dollar = rupee' in 1947". DNA. Retrieved 2013-08-19. 

External links[edit]