Indian rupee


The Indian rupee sign: ₹; code: INR, is the official currency of the Republic of India The rupee is subdivided into 100 paise singular paisa, though as of 2011 only 50 paise coins are legal tender[3][4] The issuance of the currency is controlled by the Reserve Bank of India[5] 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 The rupee is named after the silver coin, rupiya, first issued by Sultan Sher Shah Suri in the 16th century and later continued by the Mughal Empire

In 2010, a new symbol '₹', was officially adopted It was derived from the combination of the Devanagari consonant "र" 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,[6] and also depict an equality sign that symbolises the nation's desire to reduce economic disparity The first series of coins with the new rupee symbol started in circulation on 8 July 2011

In a major step to check undeclared black money, the Government of India on the 8 November 2016 announced demonetization of ₹500 and ₹1000 banknotes[7][8] with effect from the same day's midnight, making these notes invalid Apart from combating black money, the stated purpose is also to check fake currency used to finance terrorism and corruption[9] A new redesigned series of ₹500 banknote, in addition to a new denomination of ₹2000 banknote is in circulation since 10 November 2016[10][11] The new redesigned series is also expected to be introduced to the banknote denominations of ₹1000, ₹100 and ₹50 in the coming months[12]

Contents

  • 1 Etymology
  • 2 History
    • 21 1800s
    • 22 1900s
    • 23 International use
  • 3 Coins
    • 31 Pre independence issues
      • 311 East India Company, 1835
      • 312 Regal issues, 1862–1947
    • 32 Post independence issues
      • 321 Independent predecimal issues, 1950–1957
      • 322 Independent decimal issues, 1957–present
      • 323 Minting
      • 324 Commemorative coins
  • 4 Banknotes
    • 41 Pre independence issues
    • 42 Post independence issues
      • 421 Current circulating banknotes
  • 5 Convertibility
    • 51 Chronology
  • 6 Exchange rates
    • 61 Historic exchange rates
    • 62 Current exchange rates
  • 7 See also
  • 8 References
  • 9 External links

Etymology

The word "rupee" was derived from the Sanskrit word रूप्यकम् rūpyakam or rupaya meaning "wrought silver, a coin of silver"[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[13] Arthashastra, written by Chankaya, 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[14]

However in the region of Bengal, the term taka has always been used to refer to currency[15] In the 14th century, Ibn Battuta noticed that people in the Bengal Sultanate referred to gold and silver coins as taka instead of dinar Today, the currency of Bangladesh is officially known as taka The word taka in Bengali is also commonly used generically to mean any money, currency, or notes Thus, colloquially, a person speaking in Bengali may use "taka" to refer to money regardless of what currency it is denominated in Thus, in the states of West Bengal and Tripura the Indian rupee is officially known টাকা ṭaka Whereas, in the states of Assam and Odisha, the Indian rupee is similarly known by names derived from the Sanskrit word ṭaṅka meaning "money",[16] টকা ṭôka in Assamese and ଟଙ୍କା taṅkā in Odia

History

Main article: History of the rupee Silver punch mark coin of the Maurya empire, known as Rūpyarūpa, 3rd century BCE Rupiya issued by Sher Shah Suri, 1540–1545 CE

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,[17] along with the Chinese wen and Lydian staters

During his five-year rule from 1540 to 1545, Sultan Sher Shah Suri issued a coin of silver, weighing 178 grains or 1153 grams, which was termed the Rupiya[18][19] The silver coin remained in use during the Mughal period, Maratha era as well as in British India[20] 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

1800s

Historically, the rupee 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"

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]

1900s

One-rupee banknote Government of India-1 Rupee 1917

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[21] 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

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  1⁄2 rupee later 50 naye paise
  • 1 pavala = 4 anna, or  1⁄4 rupee later 25 naye paise
  • 1 beda = 2 anna, or  1⁄8 rupee later equivalent to 125 naye paise
  • 1 anna =  1⁄16 rupee later equivalent to 625 naye paise
  • 1 paraka =  1⁄2 anna later equivalent to 3125 naye paise
  • 1 kani pice =  1⁄4 anna later equivalent to 15625 naye paise
  • 1 damari pie =  1⁄12 anna later equivalent to 0520833 naye paise
  • 1 rupee = 16 anna
  • 1 Athanni dheli =  1⁄2 rupee
  • 1 Chawanni =  1⁄4 rupee
  • 1 Dawanni =  1⁄8 rupee
  • 1 Anna/Ekanni =  1⁄16 rupee
  • 1 Taka/Adhanni =  1⁄32 rupee
  • Paisa =  1⁄64 rupee
  • Dhela =  1⁄128 rupee  1⁄2 paisa
  • Pie =  1⁄3 paisa =  1⁄192 rupee
  • Damari =  1⁄4 paisa =  1⁄256 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

International use

As the Straits Settlements were originally an outpost of the British East India Company, In 1837, the Indian rupee was made the sole official currency in the Straits Settlements, as it was administered as part of British India This attempt was resisted by the locals However, Spanish dollars continued to circulate and 1845 saw the introduction of coinage for the Straits Settlements using a system of 100 cents = 1 dollar, with the dollar equal to the Spanish dollar or Mexican peso In 1867, administration of the Straits Settlements was separated from India and the Straits dollar was made the standard currency, and attempts to reintroduce the rupee were finally abandoned[22]

After the Partition of India, 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 with Kuwaiti dinar and in 1965 with Bahraini dinar, respectively[23]

The Bhutanese ngultrum is pegged at par with the Indian rupee; both currencies are accepted in Bhutan The Nepalese rupee is pegged at ₹0625; 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[24] On 29 January 2014, Zimbabwe added the Indian rupee as a legal tender to be used[1][25]

Coins

Pre independence issues

1835 East India Company 2 Mohurs
Indian rupee 1862
Obverse: Crowned bust of Queen Victoria surrounded by name Reverse: Face value, country and date surrounded by wreath
Coin made of 917% silver
1862 India One Mohur Regal issue minted during the reign of King/Emperor George V 10 Indian Paisa 1968; made of Nickle-Brass 20 Indian paise 1969 with National flower of India Indian one pice, minted in 1950 1 Indian rupee 1905 featuring Edward VII 1 Indian rupee 1918 featuring George V In 1964, India introduced aluminium coins for denominations up to 20p

East India Company, 1835

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  1⁄8- and  1⁄16-rupee in silver Madras also issued two-rupee coins

Copper denominations were more varied Bengal issued one-pie,  1⁄2-, one- and two-paise coins Bombay issued 1-pie,  1⁄4-,  1⁄2-, 1-, 1 1⁄2-, 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  1⁄2 and one dub or  1⁄96 and  1⁄48 rupee Madras also issued the Madras fanam until 1815

All three Presidencies issued gold mohurs and fractions of mohurs including  1⁄16,  1⁄2,  1⁄4 in Bengal,  1⁄15 a gold rupee and  1⁄3 pancia in Bombay and  1⁄4,  1⁄3 and  1⁄2 in Madras

In 1835, a single coinage for the EIC was introduced It consisted of copper  1⁄12,  1⁄4 and  1⁄2 anna, silver  1⁄4,  1⁄3 and 1 rupee and gold 1 and 2 mohurs In 1841, silver 2 annas were added, followed by copper  1⁄2 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

In 1862, coins were introduced known as "regal issues" which bore the portrait of Queen Victoria and the designation "India" Their denominations were  1⁄12 anna,  1⁄2 pice,  1⁄4 and  1⁄2 anna all in copper, 2 annas,  1⁄4,  1⁄2 and one rupee silver, and five and ten rupees and one mohur gold The gold denominations ceased production in 1891, and no  1⁄2-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  1⁄12 anna and  1⁄2 pice ceased production, the  1⁄4 anna was changed to a bronze, holed coin, cupro-nickel and nickel-brass  1⁄2-anna coins were introduced, nickel-brass was used to produce some one- and two-annas coins, and the silver composition was reduced from 917 to 50 percent The last of the regal issues were cupro-nickel  1⁄4-,  1⁄2- 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

Post independence issues

Main article: Modern Indian coins

Independent predecimal issues, 1950–1957

India's first coins after independence were issued in 1950 in 1 pice,  1⁄2, one and two annas,  1⁄4,  1⁄2 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–present

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 nayae was removed from all coins Between 1957 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[26][27] Although it is still legal tender, the 50-paise athanni coin is rarely seen in circulation[28]

Circulating Coins [26][29]
Value Technical parameters Description Year of
Diameter Mass Composition Shape Obverse Reverse First minting Last minting
50 paise 19 mm 379 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 379 g Ferritic stainless steel Circular Emblem of India Value, hand in a fist 2008
₹1 25 mm 485 g Ferritic stainless steel Circular Emblem of India, value Value, two stalks of wheat 1992
₹1 25 mm 495 g Ferritic

stainless steel

Circular Unity from diversity,

cross dividing 4 dots

Value, Emblem of India, Year

of minting

2004 2007
₹1 25 mm 485 g Ferritic stainless steel Circular Emblem of India Value, hand showing thumb an expression in the Bharata Natyam Dance 2007
₹1 22 mm 379 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 2675mm 58 g Ferritic

stainless steel

circular Unity from diversity,

cross dividing 4 dots

Value, Emblem of India, Year

of minting

2005 2007
₹2 27 mm 562 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 485 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 562 g Bimetallic Circular Emblem of India and

year of minting

Value with outward radiating pattern 2006 2010
₹10 27 mm 562 g Bimetallic Circular Emblem of India and year of minting Value with outward radiating pattern, new rupee sign 2011 present

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

Minting

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[30]

Commemorative coins

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 Rabindranath 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[31] Commemorative coins of ₹125 were released on 4 September 2015 and 6 December 2015 to honour 125th birth anniversary of Sarvepalli Radhakrishnan and B R Ambedkar respectively[32][33]

Banknotes

Pre independence issues

Government of India-10 Rupees 1910 British Indian one rupee note

In 1861, the government of India introduced its first paper money: 10 rupee notes in 1864, 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 In 1917, 1- and 2 1⁄2-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 rupee notes while the government continued issuing 1 rupee notes

Post independence issues

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

The design of banknotes is approved by the central government, on the recommendation of the central board of the Reserve Bank of India[5] 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 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 of the Lion capital series 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 of the Mahatma Gandhi Series in denominations of ₹10, ₹20, ₹50, ₹100, ₹500 and ₹1,000[34][35][36][37] 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 Now further dead line was extended to 30 June 2016[38]

There had been discussions on the necessity to withdraw notes of higher denominations such as the ₹1000 and ₹500 banknotes, considering their role in perpetuating unaccounted money This move was taken to further curb the problem of fake currency circulation[39][40][41] While noting that the withdrawal of high denomination notes can lead to an increase in printing costs for RBI, there was an opinion that these costs should be weighed against the misuse of high-value notes[42] On 8 November 2016 Prime Minister Narendra Modi announced the demonetization of ₹500 and ₹1000 banknotes of the Mahatma Gandhi Series, with a detailed step-down program This program would stop all usage of ₹500 and ₹1000 rupee notes by 11 November 2016[43] Citizens with valid identification will have until 30 December 2016 to exchange the notes for lower tender at any bank or post office, and until 31 March 2017 to exchange them at designated RBI offices by filling in a declaration form[44]

On 8 November 2016, the Reserve Bank of India RBI announced the issuance of new ₹500 and ₹2000 banknotes in the Mahatma Gandhi New Series of banknotes[45][46][47] The new ₹2000 banknote has a magenta base colour, with a portrait of Mahatma Gandhi as well as the Ashoka Pillar Emblem on the front The denomination also has a motif of the Mars Orbiter Mission MOM on the back, depicting the country's first venture into interplanetary space The new ₹500 banknote has a stone grey base colour with an image of the Red Fort along with the Indian flag printed on the back Both the banknotes also have the Swachh Bharat Abhiyan logo printed on the back The banknote denominations of ₹1000, ₹100 and ₹50 are also expected to be introduced in the new Mahatma Gandhi New Series, in the coming months, intended to replace all banknotes of the previous Mahatma Gandhi Series[48]

Current circulating banknotes

Main articles: Mahatma Gandhi Series and Mahatma Gandhi New Series

As of 10 November 2016, the current circulating banknotes are in denominations of ₹5, ₹10, ₹20, ₹50 and ₹100 are of the Mahatma Gandhi Series, while the denominations of ₹500 and ₹2000 are of the new Mahatma Gandhi New Series, and the denomination of ₹1 is of the Lion Capital Series

Current circulating banknotes
Image Value Dimensions Main colour Description Date of Issue Circulation
Obverse Reverse Obverse Reverse Watermark
₹1 97 × 63 mm Blue One-rupee coin Sagar Samrat oil rig Pillars of Ashoka 1994 / 2015[49][50] Limited
₹5 117 × 63 mm Green Mahatma Gandhi Tractor Mahatma Gandhi 2002 / 2009 Limited
₹10 137 × 63 mm Orange-violet Rhinoceros, elephant, tiger 1996 / 2006 Wide
₹20 147 × 63 mm Red-orange Mount Harriet, Port Blair 2001 / 2006 Wide
₹50 147 × 73 mm Violet Parliament of India 1997 / 2005 Wide
₹100 157 × 73 mm Blue-green at centre, brown-purple at 2 sides Himalaya Mountains 1996 / 2005 Wide
₹500 150 × 66 mm Stone Gray Red Fort 2016 Wide
₹2000 166 × 66 mm Magenta Mangalyaan 2016 Wide
For table standards, see the banknote specification table

Convertibility

Most traded currencies by value
Currency distribution of global foreign exchange market turnover[51]
Rank Currency ISO 4217 code
symbol
 % daily share
April 2016
1  United States dollar USD $ 876%
2  Euro EUR € 313%
3  Japanese yen JPY ¥ 216%
4  Pound sterling GBP £ 128%
5  Australian dollar AUD $ 69%
6  Canadian dollar CAD $ 51%
7  Swiss franc CHF Fr 48%
8  Chinese yuan CNY ¥ 40%
9  Swedish krona SEK kr 22%
10  Mexican peso MXN $ 22%
11  New Zealand dollar NZD $ 21%
12  Singapore dollar SGD $ 18%
13  Hong Kong dollar HKD $ 17%
14 Norwegian krone NOK kr 17%
15 South Korean won KRW ₩ 16%
16  Turkish lira TRY ₺ 14%
17 Indian rupee INR ₹ 11%
18  Russian ruble RUB ₽ 11%
19 Brazilian real BRL R$ 10%
20 South African rand ZAR R 10%
Other 71%
Total[52] 2000%

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[53] 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[54]

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[55][56]

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 provisionsThe promissory clause printed on the banknotes ie, "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" [57]

Chronology

  • 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[58]
  • 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[59]

Exchange rates

Historic exchange rates

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 US dollar while pegged to the pound sterling that was exchanged at ₹4 12a 10ps or 50 old pence per rupee Effectively, the rupee bought 1s 4d or ₹15 per sterling during 1899–1914 The gold silver ratio expanded during 1870–1910 Unlike India, her colonial master Britain was on gold standard To meet the Home Charges ie, expenditure in England the colonial government had to remit a larger number of rupees and this necessitated increased taxation, unrest and nationalism

Thereafter, both the rupee and the sterling gradually declined in worth against the US 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 ₹1333 to a pound approx 40 rupees to £3, and the pound itself was pegged to US$403 That means officially speaking the USD to INR rate would be closer to ₹4 In 1966, India changed the peg to dollar at ₹750[60]

Indian rupees per currency unit averaged over the year[61][62][63]
Currency ISO code 1947 1966 1995 1996 2000 2004 2006 2007 2008 2009 2010 2013 2014 2015 2016
Australian dollar AUD 2769 2607 3328 3402 3460 3681 3822 4200 5636 5491 4821 4996
Bahraini Dinar BHD 16455 1706 1783
Bangladeshi taka BDT 084 084 077 066 063 057 071 066 068 080 088 084 085
Canadian dollar CAD 2600 3028 3491 4109 4292 4459 5217 4953 4794 5232
Chinese Yuan CNY 580 993 1019 1015
Emirate dirham AED 1747 1826
Euroa EUR 4440 4152 5638 6412 6803 6059 6569 7021 7260 7584
Israeli shekelb ILS 1333 2197 1145 1076 1083 1708 1657 1747
Japanese Yenc JPY 10155 176 3266 3296 4179 4187 3893 3500 4227 5173 5223 6007 5779 5301 6236
Kuwaiti Dinar KWD 1780 1155 1145 1449 1533 1555 1446 1617 1677 1592 2065 2143 2131 2224
Malaysian Ringgit MYR 1859 1865 1647 1637
Maldivian rufiyaa MVR 100 133 293 291 458 476 501 523
Pakistani rupee PKR 100 133 108 095 080 077 075 067 061 059 053 057 060 062 064
Pound sterling GBP 1333 1776 5114 5538 6811 8306 8063 7638 7133 8363 7063 9108 10051 9811 9200
Russian rubled RUB 660 1500 756 669 157 105 099
Saudi riyal SAR 141 1711 1788
Singapore dollar SGD 2313 2516 2607 2683 3093 3360 3451 4127 3358 4684 4586 4667 4886
Sri Lankan rupee LKR 133 063 064 058 047 046 045 046
Swiss franc CHF 146 2748 4395 6695 6671 6670 6840
US dollar USD 330 750 3245 3544 4420 4534 4395 3950 4876 4533 4500 6880 6607 6673 6719
a Before 1 January 1999, the European Currency Unit ECU
b Before 1980, the Israeli pound ILP
c 100 Japanese Yen
d Before 1993, the Soviet ruble SUR

Current exchange rates

Current INR exchange rates
From Google Finance: AUD CAD CHF EUR GBP HKD JPY USD RUB CNY AED
From Yahoo! Finance: AUD CAD CHF EUR GBP HKD JPY USD RUB CNY AED
From XE: AUD CAD CHF EUR GBP HKD JPY USD RUB CNY AED
From OANDA: AUD CAD CHF EUR GBP HKD JPY USD RUB CNY AED
From fxtopcom: AUD CAD CHF EUR GBP HKD JPY USD RUB CNY AED

See also

  • Numismatics portal
  • India portal
  • Coins of British India
  • Modern Indian coins

References

  1. ^ a b "Indian Rupee to be legal tender in Zimbabwe" Deccan Herald [full citation needed]
  2. ^ "APPENDIX TABLE 4: INFLATION, MONEY AND CREDIT" PDF Reserve Bank of India 29 August 2016 
  3. ^ "25 paise and below coins not acceptable from June 30 – The Times of India" Times of India 30 December 2010 Retrieved 26 January 2011 
  4. ^ "Govt to scrap 25 paise coins" NDTV Retrieved 26 January 2011 
  5. ^ a b "Reserve Bank of India FAQ — Your Guide to Money Matters" Rbiorgin Retrieved 5 November 2014 
  6. ^ "Indian Rupee Joins Elite Currency Club" Theworldreportercom 17 July 2010 
  7. ^ Mukherjee, Amrita 14 November 2016 "How I feel super rich with Rs 100 and Rs 10 in my purse" wwwatimescom Retrieved 16 November 2016 
  8. ^ Asia Times, Staff 15 November 2016 "India's demonetization takes its toll on major sectors" wwwatimescom Retrieved 16 November 2016 
  9. ^ Alpana Killawala 8 November 2016 "Withdrawal of Legal Tender Status for ₹ 500 and ₹ 1000 Notes: RBI Notice" Press release Reserve Bank of India Retrieved 13 November 2016 
  10. ^ Alpana Killawala 8 November 2016 "Issue of ₹500 Banknotes Press Release" PDF Press release Reserve Bank of India Retrieved 8 November 2016 
  11. ^ Alpana Killawala 8 November 2016 "Issue of ₹2000 Banknotes Press Release" PDF Press release Reserve Bank of India Retrieved 8 November 2016 
  12. ^ "RBI to issue ₹1,000, ₹100, ₹50 with new features, design in coming months" Business Line 10 November 2016 Retrieved 10 November 2016 
  13. ^ "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 
  14. ^ Redy "AIndiahtm" Worldcoincatalogcom Retrieved 20 June 2013 
  15. ^ electricpulpcom "BENGAL – Encyclopaedia Iranica" 
  16. ^ Klaus Glashoff "Meaning of टङ्क Tanka" Spokensanskritde Retrieved 5 November 2011 
  17. ^ Subodh Kapoor January 2002 The Indian encyclopaedia: biographical, historical, religious , Volume 6 Cosmo Publications p 1599 ISBN 81-7755-257-0 
  18. ^ etymonlinecom 20 September 2008 "Etymology of rupee" Retrieved 20 September 2008 
  19. ^ Mughal Coinage at RBI Monetary Museum Retrieved on 4 May 2008
  20. ^ "Coinage — Pre-Colonial India Coinage" Rbiorgin Retrieved 20 June 2013 
  21. ^ Rezwan Razack; Kishore Jhunjhunwalla 2012 The Revised Standard Reference Guide to Indian Paper Money Coins & Currencies ISBN 978-81-89752-15-6 
  22. ^ Straits Settlements 1867 – 1946
  23. ^ "Internationalisation of currency: the case of the Indian rupee and Chinese renminbi" PDF Rib staff studies Retrieved 1 March 2010 
  24. ^ "Don't take 1,000 and 500 Indian rupee notes to Nepal" Rib staff studies Retrieved 27 October 2014 
  25. ^ "Zimbabwe's multi-currency confusion" BBC News 
  26. ^ a b "Issue of new series of Coins" RBI Retrieved 4 November 2011 
  27. ^ "This numismatist lays hands on coins with Rupee symbol" Times of India 29 August 2011 Retrieved 4 November 2011 
  28. ^ "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 
  29. ^ "Reserve Bank of India — Coins" Rbiorgin Retrieved 5 November 2011 
  30. ^ Reserve Bank of India – Coins Rbiorgin Retrieved on 28 July 2013
  31. ^ Gaikwad, Rahi 9 January 2015 "India, South Africa discuss UNSC reforms" The Hindu Chennai, India Retrieved 9 January 2015 
  32. ^ "Teachers' day: PM Narendra Modi releases Rs 125 coin in honour of Dr S Radhakrishnan" Financial Express 4 September 2016 Retrieved 10 November 2016 
  33. ^ "PM Narendra Modi releases Rs 10, Rs 125 commemorative coins honouring Dr Babasaheb Ambedkar" Financial Express 6 December 2016 Retrieved 10 November 2016 
  34. ^ "Issue of ` 10/- Banknotes with incorporation of Rupee symbol `" RBI Retrieved 23 January 2012 
  35. ^ "Issue of ` 500 Banknotes with incorporation of Rupee symbol" RBI Retrieved 23 January 2012 
  36. ^ "Issue of ` 1000 Banknotes with incorporation of Rupee symbol" RBI Retrieved 23 January 2012 
  37. ^ "Issue of `100 Banknotes with incorporation of Rupee symbol" RBI Retrieved 23 January 2012 
  38. ^ "Withdrawal of Currencies Issued Prior to 2005" Press Information Bureau 25 July 2014 Retrieved 25 July 2014 
  39. ^ ""This Fight Is Against Deep-Rooted Corruption In The System" —Baba Ramdev" 18 June 2011 
  40. ^ Ranade, Ajit 16 February 2016 "Retiring the 1,000 rupee note" 
  41. ^ "Print :We should abolish Rs 500 and Rs 1,000 notes completely" 
  42. ^ Shashidhar, Karthik 16 March 2016 "Scrapping Rs500, Rs1000 notes a costly idea" 
  43. ^ ""PM Modi Says Rs 500 And Rs 1,000 Notes Being Discontinued"" "ndtv 8 November 2016 
  44. ^ "Withdrawal of Legal Tender Status for ₹ 500 and ₹ 1000 Notes: RBI Notice Revised" Reserve Bank of India 8 November 2016 Retrieved 8 November 2016 
  45. ^ "Issue of ₹ 2000 Banknotes" Reserve Bank of India 8 November 2016 Retrieved 8 November 2016 
  46. ^ "Issue of ₹ 2000 banknotes with inset letter 'R'" Reserve Bank of India 8 November 2016 Retrieved 8 November 2016 
  47. ^ "Issue of ₹ 500 banknotes inset letter 'E' in Mahatma Gandhi New Series" Reserve Bank of India 8 November 2016 Retrieved 9 November 2016 
  48. ^ RBI to issue ₹1,000, ₹100, ₹50 with new features, design in coming months
  49. ^ "Printing of One Rupee Currency Notes Rules, 2015" The Dollar Business 
  50. ^ India new 1-rupee note dated 2015 confirmed BanknoteNewscom 25 May 2015 Retrieved on 26 May 2015
  51. ^ "Triennial Central Bank Survey Foreign exchange turnover in April 2016" PDF Triennial Central Bank Survey Basel, Switzerland: Bank for International Settlements September 2016 p 7 Retrieved 1 September 2016 
  52. ^ The total sum is 200% because each currency trade always involves a currency pair
  53. ^ "Convertibility: Patnaik, 2004" PDF
  54. ^ Chandra, Shobhana 26 September 2007 "'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" Bloombergcom Retrieved 5 November 2011 
  55. ^ "RBI Master Circular on Import of Goods and Services" Rbiorgin Retrieved 25 August 2013 
  56. ^ "RBI Master Circular on Export of Goods and Services" Rbiorgin Retrieved 25 August 2013 
  57. ^ Reserve bank of India Frequently Asked Questions rbiorgin Retrieved 27 August 2013
  58. ^ 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:101007/s10690-007-9034-0
  59. ^ "The "Fuller Capital Account Convertibility Report"" PDF 31 July 2006 Retrieved 23 January 2009 
  60. ^ Saurabh Chandra 21 August 2013 "The fallacy of 'dollar = rupee' in 1947" Retrieved 22 August 2013 
  61. ^ historical exchange rates - fxtopcom
  62. ^ "FXHistory: historical currency exchange rates" database OANDA Corporation Archived from the original on 3 April 2006 Retrieved 1 September 2009 
  63. ^ "The fallacy of 'dollar = rupee' in 1947" DNA Retrieved 19 August 2013 
  • Krause, Chester L; Clifford Mishler 1991 Standard Catalog of World Coins: 1801–1991 18th ed Krause Publications ISBN 0873411501 
  • Pick, Albert 1994 Standard Catalog of World Paper Money: General Issues Colin R Bruce II and Neil Shafer editors 7th ed Krause Publications ISBN 0-87341-207-9 

External links

  • British India Coins wiki
  • A gallery of all Indian currency issues
  • "Gallery of Indian Rupee Notes introduced till date" Reserve Bank of India Retrieved 9 January 2015 
  • The banknotes of India English German


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