Indian rupee

{{Infobox currency | currency_name_in_local = भारतीय रुपया | iso_code = INR | iso_number = 356 | date_of_introduction = 15th century (in its earliest forms), modern decimal system adopted 1957 | using_countries =
(alongside Bhutanese ngultrum)

Indian rupee. The Indian rupee is the official currency of the Republic of India, issued and managed by the Reserve Bank of India under the Reserve Bank of India Act, 1934. Its modern symbol, ₹, was adopted in 2010, representing an amalgamation of the Devanagari letter "र" and the Latin capital letter "R". The currency is a cornerstone of one of the world's fastest-growing major economies and is integral to trade across South Asia.

History

The term "rupee" is derived from the Sanskrit word *rūpya*, meaning "wrought silver", and its earliest precursors can be traced to silver coins issued during the reign of Sher Shah Suri in the 16th century. The British East India Company and later the British Raj standardized the currency, introducing the Government of India rupee in 1861. Following independence in 1947, the Indian government introduced its own designs, and the decimal system, dividing the rupee into 100 paise, was formally adopted by the Indian Coinage Act of 1955. Major historical milestones include the 1966 Indian rupee devaluation, the 1991 Indian economic crisis which led to a managed float, and the 2016 Indian banknote demonetisation of ₹500 and ₹1000 notes under Prime Minister Narendra Modi.

Coins

Coins are minted by the India Government Mint facilities in Mumbai, Kolkata, Hyderabad, and Noida. Currently circulating coins include denominations of ₹1, ₹2, ₹5, ₹10, and ₹20, with the latter being a bimetallic coin introduced in 2019. Earlier issues featured lower denominations in paise, such as the 5, 10, 20, 25, and 50 paise coins, most of which have been phased out of regular use. Commemorative coins are frequently issued to mark events like the birth anniversaries of Mahatma Gandhi or Jawaharlal Nehru, or international events like the 2010 Commonwealth Games in Delhi. The designs often feature the Lion Capital of Ashoka, India's national emblem, on the obverse.

Banknotes

Banknotes, printed by the Security Printing and Minting Corporation of India at presses in Nashik and Dewas, are issued in denominations of ₹1 (now rare), ₹2, ₹5, ₹10, ₹20, ₹50, ₹100, ₹200, ₹500, and ₹2000. The current series, called the Mahatma Gandhi New Series, introduced in 2016 after demonetisation, features enhanced security elements like a security thread, latent image, and fluorescence under ultraviolet light. The notes prominently depict Mahatma Gandhi on the obverse, with reverse designs showcasing India's cultural and scientific heritage, such as the Red Fort on the ₹500 note and the Mangalyaan Mars orbiter on the ₹2000 note. The ₹10 note is made partially of cotton and rag.

Exchange rates

The exchange rate regime is classified as a managed float, determined largely by market forces in the foreign exchange market, with occasional intervention by the Reserve Bank of India. Major traded pairs include the US dollar (USD/INR), the euro (EUR/INR), the pound sterling (GBP/INR), and the Japanese yen (JPY/INR). Historical volatility has been influenced by global events like the 1997 Asian financial crisis, the 2008 financial crisis, and fluctuations in crude oil prices. The currency is fully convertible on the current account but has restrictions on the capital account as per regulations from the Securities and Exchange Board of India.

Economy and usage

As the legal tender of the world's fifth-largest economy by nominal GDP, the rupee facilitates a vast domestic market and significant international trade, particularly with partners like the United States, the United Arab Emirates, and China. Its usage extends beyond India's borders, being legal tender in Bhutan (at par with the Bhutanese ngultrum) and widely accepted in Nepal, and it also sees circulation in nations with large Indian diasporas such as the Persian Gulf states. The push for digital transactions, championed by initiatives like the Unified Payments Interface and the rise of Paytm and PhonePe, is transforming its physical usage. The internationalization of the rupee, including its inclusion in the International Monetary Fund's Special Drawing Rights basket, remains a long-term policy goal of the Government of India and the Reserve Bank of India. Category:Currencies of India Category:Rupee Category:Economy of India