Indian rupee: Difference between revisions

| frequently_used_banknotes = [[Indian 10-rupee note|{{INR}}10]], [[Indian 20-rupee note|{{INR}}20]], [[Indian 50-rupee note|{{INR}}50]], [[Indian 100-rupee note|{{INR}}100]], [[Indian 200-rupee note|{{INR}}200]], [[Indian 500-rupee note|{{INR}}500]], [[Indian 2000-rupee note|{{INR}}2000]]

| rarely_used_banknotes = [[Indian 1-rupee note|{{INR}}1]], [[Indian 2-rupee note|{{INR}}2]], [[Indian 5-rupee note|{{INR}}5]]

| frequently_used_coins = [[Indian 1-rupee coin|{{INR}}1]], [[Indian 2-rupee coin|{{INR}}2]], [[Indian 5-rupee coin|{{INR}}5]], [[Indian 10-rupee coin|{{INR}}10]],[[Indian 20-rupee coin|{{INR}}20]]

| rarely_used_coins = [[Indian 50-paisa coin|50]][[File:Indian Paisa symbol.svg|10px]],

| subunit_name_1 = [[Indian paisa|paisa]]

| inflation_rate = {{increase}}6.2% (2020–21)

| inflation_method = [[Consumer Price Index|CPI]]<ref>{{cite web |title=Reserve Bank of India - Annual Report |url=https://rbi.org.in/scripts/AnnualReportPublications.aspx?Id=1331 |website=rbi.org.in |access-date=9 April 2022}}</ref>

| pegged_by = {{flagd|Bhutan|size=20px}} [[Bhutanese ngultrum]] (at par)<br />{{flagd|Nepal|size=20px}} [[Nepalese rupee]] (higher value)<ref>{{cite web|url=http://www.thehindubusinessline.com/money-and-banking/nepal-to-keep-currency-pegged-at-to-indian-rupee/article9689230.ece |title=Nepal to keep currency pegged to Indian rupee |work=[[Business Line]] |date=11 January 2018 |access-date=13 May 2019}}</ref>

The '''Indian rupee''' ([[Currency symbol|symbol]]: '''[[Indian rupee sign|₹]]'''; [[ISO 4217|code]]: '''INR''') is the official [[currency]] of [[India]]. The rupee is subdivided into 100 ''[[Indian paisa|paise]]'' (singular: ''paisa''), though as of 2019, coins of denomination of 1 rupee is the lowest value in use. The issuance of the currency is controlled by the [[Reserve Bank of India]]. 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 immediate precursor of the rupee is the ''rūpiya''—the silver coin weighing 178 [[Grain (mass)|grains]] minted in northern India by first [[Sher Shah Suri]] during his brief rule between 1540 and 1545 and adopted and standardized later by the [[Mughal Empire]]. The weight remained unchanged well beyond the end of the Mughals till the 20th century.<ref name="mogul">{{cite web |title=Mogul Coinage |url=https://www.rbi.org.in/currency/museum/c-mogul.html|website=[[RBI Monetary Museum]] |publisher=[[Reserve Bank of India]] |archive-url=https://web.archive.org/web/20021005231609/http://www.rbi.org.in/currency/museum/c-mogul.html |url-status=dead |archive-date=5 October 2002 |quote=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 }}</ref> Though [[Pāṇini]] mentions {{transliteration|sa|ISO|rūpya}} ({{lang|sa|रूप्य}}), it is unclear whether he was referring to coinage.<ref>{{citation |first=Shankar |last=Goyal |title=The Origin and Antiquity of Coinage in India |journal=Annals of the Bhandarkar Oriental Research Institute |publisher=[[Bhandarkar Oriental Research Institute]] |volume=80 |number=1/4 |year=1999 |jstor=41694581 |page=144|quote=[[Panini (grammarian)|Panini]] makes the statement (V.2.120) that a 'form' (''rüpa'') when 'stamped' (''ahata'') or when praise-worthy (prašamsa) takes the ending ''ya'' (i.e. ''rupya''). ... Whether Panini was familiar with coins or not, his ''[[Astadhyayi]]'' does not specifically state.}}</ref> ''[[Arthashastra]]'', written by Chanakya, prime minister to the first [[Maurya Empire|Maurya emperor]] [[Chandragupta Maurya]] ({{circa|340–290 BCE}}), mentions silver coins as {{transliteration|sa|ISO|rūpyarūpa}}. Other types of coins, including gold coins ({{transliteration|sa|ISO|suvarṇarūpa}}), copper coins ({{transliteration|sa|ISO|tāmrarūpa}}), and lead coins ({{transliteration|sa|ISO|sīsarūpa}}), are also mentioned.<ref>{{citation |title=Arthashastra Of Chanakya |url=https://archive.org/details/arthashastraofchanakyaenglishrshamasastry/page/n11/mode/2up |pages=115, 119, 125 |author=R Shamasastry |year=1915 |access-date=15 April 2021 }}</ref>

[[File:MauryanCoin.JPG|right|thumb|Silver [[Punch-marked coins|punch mark coin]] of the [[Maurya empire]], known as ''Rūpyarūpa'', 3rd century BCE.]]

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,<ref>{{cite book |first=Subodh |last=Kapoor |title=The Indian encyclopaedia: biographical, historical, religious ..., Volume 6 |publisher=Cosmo Publications |date=January 2002 |page=1599 |url=https://books.google.com/books?id=q5ZM0nZXZEkC&pg=PA1599 |isbn=81-7755-257-0 }}</ref> along with the [[Chinese wen]] and [[Lydia]]n [[stater]]s.<ref>{{citation |first=David M. |last=Schaps |chapter=The Invention of Coinage in Lydia, in India, and in China |title=XIV International Economic History Congress|location=Helsinki|year=2006 |publisher=[[International Economic History Association]] |chapter-url=http://www.helsinki.fi/iehc2006/papers1/Schaps.pdf}}</ref>

''[[Arthashastra]]'', written by [[Chanakya]], prime minister to the first [[Maurya Empire|Maurya emperor]] [[Chandragupta Maurya]] (c. 340–290 BCE), mentions silver coins as ''rūpyarūpa'', other types including gold coins (suvarṇarūpa), copper coins (tamrarūpa) and lead coins (sīsarūpa) are mentioned. {{transliteration|sa|ISO|Rūpa}} means 'form' or 'shape'; for example, in the word {{transliteration|sa|ISO|rūpyarūpa}}: {{transliteration|sa|ISO|rūpya}} 'wrought silver' and {{transliteration|sa|ISO|rūpa}} 'form'.<ref name="Redy">{{cite web|author=Redy |url=http://worldcoincatalog.com/AC/C3/India/AIndia.htm |title=AIndia.htm |publisher=Worldcoincatalog.com |access-date=20 June 2013}}</ref>

In the intermediate times there was no fixed monetary system as reported by the ''[[Great Tang Records on the Western Regions|Da Tang Xi Yu Ji]]''.<ref>{{cite book|series=Trübner's Oriental Series|title=DA TANG XIYU JI [[Great Tang Records on the Western Regions|Great Tang Dynasty Records of the Western World]]|translator=[[Samuel Beal]]|volume=1-2|publisher=[[Kegan Paul, Trench Trubner & Co.]]|location=London|year=1906|edition=First|orig-date=1884}}</ref>

During his five-year rule from 1540 to 1545, [[Sultan]] [[Sher Shah Suri]] issued a coin of silver, weighing 178 [[Grain (mass)|grains]] (or 11.53 grams), which was also termed the ''rupiya''.<ref name="etymonline1">{{cite web|url=http://www.etymonline.com/index.php?search=rupee&searchmode=none|title=Etymology of rupee|date=20 September 2008|website=[[Online Etymology Dictionary]]|access-date=20 September 2008}}</ref><ref name="rbi-c-mogul">[http://www.rbi.org.in/currency/museum/c-mogul.html Mogul Coinage] {{webarchive|url=https://web.archive.org/web/20080516085855/http://www.rbi.org.in/currency/museum/c-mogul.html |date=16 May 2008 }} at [[RBI Monetary Museum]]. Retrieved 4 May 2008.</ref> During [[Babur]]'s time, the brass to silver exchange ratio was roughly 50:2.<ref>[https://archive.org/stream/TheTarikh-i-rashidi/TheTarikh-i-rashidiVer1.0_djvu.txt Chapter CXII]. [[Tarikh-i-Rashidi]].</ref> The silver coin remained in use during the [[Mughal period]], [[Maratha Empire|Maratha era]] as well as in [[British India]].<ref name="rbi-c-colo">{{cite web|url=http://www.rbi.org.in/currency/museum/c-colo.html |title=Coinage&nbsp;– Pre-Colonial India Coinage |publisher=Rbi.org.in |access-date=20 June 2013}}</ref> Among the earliest issues of [[banknote|paper rupees]] include; the [[Bank of Hindostan|Bank of Hindustan]] (1770–1832), the General Bank of Bengal and Bihar (1773–75, established by [[Warren Hastings]]), and the Bengal Bank (1784–91).

{{more citations needed section|date=November 2016}}

!colspan="3" style="background:#ffdead;"|Indian silver rupee value (1850–1900)<ref name="Indian Currency Problems of the Last Decade">{{cite web|url=https://archive.org/details/jstor-1884973 |title=Indian Currency Problems of the Last Decade. the Quarterly Journal of Economics, August, 1901 |date=August 1901 |publisher=The Quarterly Journal of Economics |access-date=18 April 2018}}</ref>

Following the [[Indian Rebellion of 1857|First war of Independence]] in 1857, the British government took direct [[British Raj|control]] of India. Since 1851, gold sovereigns were produced ''en masse'' at the [[Royal Mint]] in [[Sydney]]. In an 1864 attempt to make the British [[gold sovereign]] the "imperial coin", the treasuries in [[Bombay]] and [[Calcutta]] were instructed to receive (but not to issue) gold sovereigns; therefore, these gold sovereigns never left the vaults. As the British government gave up hope of replacing the rupee in India with the pound [[Sterling silver|sterling]], it realised for the same reason it could not replace the [[trade coin|silver dollar]] in the [[Straits Settlements]] with the Indian rupee (as the British East India Company had desired). Since the [[silver crisis of 1873]], several nations switched over to a [[Gold standard#Gold exchange standard|gold exchange standard]] (wherein silver or banknotes circulate locally but with a fixed gold value for export purposes), including India in the 1890s.<ref>{{Cite wikisource|Indian Currency and Finance|chapter=Chapter II}}</ref>

In 1870, India was connected to Britain by a submarine telegraph cable.<!-- An overland telegraph from Britain to India was first connected in 1866 but was unreliable so a submarine telegraph cable was connected in 1870. -->[[Telegraphy]]

<blockquote>If, therefore, the India Council in London should not step in to sell bills on India, the merchants and bankers would have to send silver to make good the (trade) balances. Thus a channel for the outflow of silver was stopped, in 1875, by the India Council in London.<ref name="The silver question">{{cite web|url=https://archive.org/stream/jstor-25110026/25110026_djvu.txt |title=The Silver Question |date=23 October 2016 |publisher=The North American Review |access-date=18 April 2018}}</ref></blockquote>

<blockquote>The great importance of these (Council) Bills, however, is the effect they have on the Market Price of Silver : and they have in fact been one of the most potent factors in recent years in causing the diminution in the Value of Silver as compared to Gold.<ref name="Henry Dunning Macleod">{{cite web|url=https://books.google.com/books?id=yEMIAAAAQAAJ&q=syria&pg=PA10 |title=The Theory and Practice of Banking|year=1883 |access-date=18 April 2018|last1=MacLeod |first1=Henry Dunning |author-link=Henry Dunning Macleod}}</ref></blockquote>

<blockquote>the great nations had recourse to two expedients for replenishing their exchequers, {{ndash}} first, loans, and, second, the more convenient forced loans of paper money۔<ref name="The silver question" /></blockquote>

The [[Indian Currency Committee]] or Fowler Committee was a government committee appointed by the [[British Raj|British-run Government of India]] on 29 April 1898 to examine the currency situation in India.<ref name="chishti2001">{{Citation | title=Committees and commissions in pre-independence India 1836–1947, Volume 3 | author=M. Anees Chishti | year= 2001 | isbn=978-81-7099-803-7 | publisher=Mittal Publications | url=https://books.google.com/books?id=J5JipbQyOCQC | quote=... The Indian Currency Committee was appointed by the Royal Warrant of 29 April 1898 ... by the closing of the Indian Mints to what is known as the free coinage of Silver ...}}</ref> They collected a wide range of testimony, examined as many as forty-nine witnesses, and only reported their conclusions in July 1899, after more than a year's deliberation.<ref name="Indian Currency Problems of the Last Decade" />

These recommendations were acceptable to both governments, and were shortly afterwards translated into laws. The act making gold a legal tender was promulgated on 15 September 1899; and preparations were soon thereafter undertaken for the coinage of gold sovereigns in the mint at Bombay.<ref name="Indian Currency Problems of the Last Decade" /> This law was just to defraud Indian people, as gold sovereign coins were never minted in India.<ref name="John Maynard Keynes" />

<blockquote>The Committee of 1898 explicitly declared themselves to be in favour of the eventual establishment of a gold currency.<br />This goal, '''if it was their goal''', the Government of India have never attained.<ref name="John Maynard Keynes" /></blockquote>

In 1913, [[John Maynard Keynes]] writes in his book ''Indian Currency and Finance'' that during financial year 1900{{ndash}}1901, gold coins (sovereigns) worth of £6,750,000 were given to Indian people in the hope that it will circulate as currency. But against the expectation of Government, even half of that were not returned to Government, and this experiment failed spectacularly, so Government abandoned this practice (but did not abandon the narrative of gold standard). As a punishment to this loss of gold, all gold held by Government of India was shipped to [[Bank of England]] in 1901.<!-- And in March the Post Offices in the

in India was, a little later on, shipped to England in order to be held

At the onset of the [[World War I|First World War]], the cost of gold was very low and therefore the pound sterling had high value. But during the First World War, the value of the pound fell alarmingly due to rising war expenses. At the conclusion of the war, the value of the pound was only a fraction of what it used to be prior to the commencement of the war. It remained low until 1925, when the then [[Chancellor of the Exchequer]] (finance minister) of the United Kingdom, [[Winston Churchill]], restored it to pre-War levels. As a result, the price of gold fell rapidly. While the rest of Europe purchased large quantities of gold from the United Kingdom, there was little increase in her gold reserves. This dealt a blow to an already deteriorating British economy. The United Kingdom began to look to its possessions as India to compensate for the gold that was sold.<ref>Balachandran, G. (1996). John Bullion's Empire: Britain's Gold Problem and India Between the Wars. Routledge. {{ISBN|978-0-7007-0428-6}}., p. 6</ref>

However, the price of gold in India, on the basis of the exchange rate of the rupee around 1[[Shilling (British coin)|S]].6[[Penny (British pre-decimal coin)|d]]., was lower than the price prevailing abroad practically throughout; the disparity in prices made the export of the metal profitable, which phenomenon continued for almost a decade. Thus, in 1931–32, there were net exports of 7.7&nbsp;million ounces, valued at Rs. 579.8&nbsp;million. In the following year, both the quantity and the price rose further, net exports totaling 8.4&nbsp;million ounces, valued at Rs. 655.2&nbsp;million. In the ten years ended March 1941, total net exports were of the order of 43&nbsp;million ounces (1337.3 Tons) valued at about Rs. 3.75&nbsp;billion, or an average price of Rs. 32-12-4 per tola.<ref>[http://rbidocs.rbi.org.in/rdocs/content/PDFs/89635.pdf Currency, Exchange and Banking Prior to 1935]. [[Reserve Bank of India]].</ref>

In the autumn of 1917 (when the silver price rose to 55 [[Penny (British pre-decimal coin)|pence]]), there was danger of uprisings in India (against paper currency) which would handicap seriously British participation in the World War. In-convertibility (of paper currency into coin) would lead to a run on [[Postal savings system|Post Office Savings Banks]]. It would prevent the further expansion of (paper currency) note issues and cause a rise of prices, in paper currency, that would greatly increase the cost of obtaining war supplies for export, to have reduced the silver content of this historic [rupee] coin might well have caused such popular distrust of the Government as to have precipitated an internal crisis, which would have been fatal to British success in the war.<ref name="Silver Money">{{cite web |url= http://cowles.yale.edu/sites/default/files/files/pub/mon/m04-all.pdf |author= Dickson H Leavens|year= 1939|title = Silver Money |website= [[Cowles Foundation]] }}</ref>

From 1931 to 1941, the United Kingdom purchased large amount of gold from India and its many other colonies just by increasing price of gold, as Britain was able to pay in printable paper currency. Similarly, on 19 June 1934, [[Franklin D. Roosevelt|Roosevelt]] made [[American Silver Purchase Act|Silver Purchase Act]] (which increased price of silver) and purchased about 44,000 tons of silver by paying paper certificates ([[silver certificate]]).<ref>[http://library.cqpress.com/cqresearcher/document.php?id=cqresrre1937121400 Four Years of the Silver Program]. 14 December 1937. [[CQ Press]].</ref>

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 India]] in 1947 and the [[Instrument of Accession|accession]] of the [[princely state]]s to the new [[Dominion of India|Union]], the Indian rupee replaced all the currencies of the previously autonomous states (although the [[Hyderabadi rupee]] was not demonetised until 1959).<ref>{{cite book|first1=Rezwan |last1=Razack |first2=Kishore |last2=Jhunjhunwalla |title=The Revised Standard Reference Guide to Indian Paper Money|year=2012|publisher=Coins & Currencies|isbn=978-81-89752-15-6|title-link=The Revised Standard Reference Guide to Indian Paper Money }}</ref> 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.

|+Subdivisions of rupee during 20th century

|-

=== Worldwide rupee usage ===

{{See also|Gulf rupee|Bhutanese ngultrum|Nepalese rupee|Pakistani rupee}}

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 dollar]]s continued to circulate and 1845 saw the introduction of coinage for the Straits Settlements using a system of 100 [[Cent (currency)|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.<ref>{{cite web|url=http://www.dcstamps.com/?p=739 |title=Straits Settlements (1867–1946) |publisher=Dcstamps.com |date=13 May 2014 |access-date=18 April 2018}}</ref>

 

The Indian government introduced the [[Gulf rupee]]&nbsp;– also known as the Persian Gulf rupee (XPGR)&nbsp;– as a replacement for the Indian rupee for circulation outside the country with the Reserve Bank of India (Amendment) Act of 1 May 1959.<ref>{{Cite web |last=Kamalakaran |first=Ajay |title=Gulf rupee: When the Reserve Bank of India played central banker in West Asia |url=https://scroll.in/magazine/1005110/gulf-rupee-when-the-reserve-bank-of-india-played-central-banker-in-west-asia |access-date=2022-04-19 |website=Scroll.in |language=en-US}}</ref> 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&nbsp;– Oman, Qatar, and the Trucial States (which became the [[United Arab Emirates]] in 1971)&nbsp;– replaced the [[Gulf rupee]] with their own [[Currency|currencies]]. Kuwait and Bahrain had already done so in 1961 with [[Kuwaiti dinar]] and in 1965 with [[Bahraini dinar]], respectively.<ref name="commoncurrency">{{cite web|url=http://rbidocs.rbi.org.in/rdocs/PublicationReport/Pdfs/RRSS180510F.pdf |title=Internationalisation of currency: the case of the Indian rupee and Chinese renminbi |publisher=RBI Staff Studies |access-date=1 March 2010}}</ref>

 

The [[Bhutanese ngultrum]] is pegged at par with the Indian rupee; both currencies are accepted in Bhutan. The [[Nepalese rupee]] is pegged at {{INR}}0.625; the Indian rupee is accepted in Bhutan and Nepal, except {{INR}}[[Indian 500-rupee note|500]] and {{INR}}[[Indian 1000-rupee note|1000 banknotes]] of the [[Mahatma Gandhi Series]] and the {{INR}}[[Indian 200-rupee note|200]], {{INR}}500 and {{INR}}[[Indian 2000-rupee note|2,000]] banknotes of the [[Mahatma Gandhi New Series]], which are not legal tender in Bhutan and Nepal and are banned by their respective governments, though accepted by many retailers.<ref>{{cite web |url=http://www.rediff.com/news/report/dont-take-1-000-and-500-indian-rupee-notes-to-nepal/20120725.html |title=Don't take 1,000 and 500 Indian rupee notes to Nepal |publisher=RBI Staff Studies |access-date=27 October 2014 |archive-date=27 October 2014 |archive-url=https://web.archive.org/web/20141027133004/http://www.rediff.com/news/report/dont-take-1-000-and-500-indian-rupee-notes-to-nepal/20120725.html |url-status=dead }}</ref> On 29 January 2014, Zimbabwe added the Indian rupee as a [[legal tender]] to be used.<ref name="deccanherald.com">{{cite news |title=Indian Rupee to be legal tender in Zimbabwe |url=https://www.deccanherald.com/content/383402/indian-rupee-legal-tender-zimbabwe.html |access-date=8 November 2019 |work=[[Deccan Herald]] |publisher=The Printers Mysore |date=29 January 2014}}</ref><ref>{{cite news|url=https://www.bbc.com/news/world-africa-26034078|title=Zimbabwe's multi-currency confusion|work=BBC News|date=6 February 2014}}</ref>

In 1862, coins were introduced (known as "regal issues") which bore the portrait of [[Queen Victoria]] and the designation "India". Their denominations were {{frac|1|12}} [[Indian anna|anna]], {{frac|1|2}} [[Indian pice|pice]], {{frac|1|4}} and {{frac|1|2}} anna (all in copper), 2 annas, {{frac|1|4}}, {{frac|1|2}} and one rupee (silver), and five and ten rupees and one [[mohur]] (gold). The gold denominations ceased production in 1891, and no {{frac|1|2}}-anna coins were issued after 1877.

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-paise coin and all paise coins below it took place, and a new series of coins (50 paise&nbsp;– nicknamed ''athanni''&nbsp;– one, two, five, and ten rupees with the new rupee sign) were put into circulation in 2011. In 2016 the 50 paise coin was last minted, but small commodities of prices are in 50 paise. Coins commonly in circulation are one, two, five, ten, and twenty rupees.<ref name="newcoin">{{cite web|title=Issue of new series of Coins|url=http://www.rbi.org.in/scripts/BS_ViewCurrencyPressRelease.aspx?Id=24773|publisher=RBI|access-date=4 November 2011}}</ref><ref name="TimesofIndia29082011">{{cite news|title=This numismatist lays hands on coins with Rupee symbol|url=http://articles.timesofindia.indiatimes.com/2011-08-29/vadodara/29940658_1_coins-nandan-parikh-new-symbol|archive-url=https://web.archive.org/web/20111107053256/http://articles.timesofindia.indiatimes.com/2011-08-29/vadodara/29940658_1_coins-nandan-parikh-new-symbol|url-status=dead|archive-date=7 November 2011|access-date=4 November 2011|newspaper=[[The Times of India]]|date=29 August 2011}}</ref> Although it is still legal tender, the 50-paise (''athanni'') coin is rarely seen in circulation.<ref>{{cite web|title=Coins of 25 paise and below will not be Legal Tender from June 30, 2011 : RBI appeals to Public to Exchange them up to June 29, 2011|url=http://www.rbi.org.in/scripts/BS_ViewCurrencyPressRelease.aspx?Id=24418|publisher=RBI|access-date=23 January 2012|date=18 May 2011}}</ref>

|4.95&nbsp;g

|Ferritic

stainless steel

|Unity from diversity,

cross dividing 4 dots

|Value, Emblem of India, Year

of minting

|5.8&nbsp;g

|Ferritic

stainless steel

|Unity from diversity,

cross dividing 4 dots

|Value, Emblem of India, Year

of minting

| [[Indian 10-rupee coin|{{INR}}10]] || 27&nbsp;mm || 7.62&nbsp;g || [[Bi-metallic coin|Bimetallic]]|| Circular || Emblem of India and

year of minting

The coins are minted at the four locations of the [[India Government Mint]]. The {{INR}}1, {{INR}}2, and {{INR}}5 coins have been minted since independence. The Government of India is set to introduce a new {{INR}}20 coin with a dodecagonal shape, and like the {{INR}}10 coin, also bi-metallic, along with new designs for the new versions of the {{INR}}1, {{INR}}2, {{INR}}5 and {{INR}}10 coins, which was announced on 6 March 2019.<ref>{{Cite web|url=https://www.pmindia.gov.in/en/news_updates/pm-releases-new-series-of-visually-impaired-friendly-coins/|title=PM releases new series of visually impaired friendly coins|website=[[Prime Minister's Office (India)|Prime Minister's Office]]|access-date=16 May 2019}}</ref>

After independence, the [[India Government Mint|Government of India Mint]], minted [[numismatics]] coins imprinted with Indian statesmen, historical and religious figures. In the years 2010 and 2011 for the first time ever {{INR}}75, {{INR}}150 and {{INR}}1000 coins were minted in India to commemorate the Platinum Jubilee of the [[Reserve Bank of India]], the 150th birth anniversary of the birth of [[Rabindranath Tagore]] and 1000 years of the [[Brihadeeswarar Temple]], respectively. In 2012 a {{INR}}60 coin was also issued to commemorate 60 years of the Government of India Mint, Kolkata. {{INR}}[[Indian 100-rupee coin|100 coin]] was also released commemorating the 100th anniversary of [[Mahatma Gandhi]]'s return to India.<ref>{{cite news|title=India, South Africa discuss UNSC reforms|url=http://www.thehindu.com/todays-paper/tp-national/india-south-africa-discuss-unsc-reforms/article6769452.ece|access-date=9 January 2015|newspaper=[[The Hindu]]|date=9 January 2015|location=Chennai, India|first=Rahi|last=Gaikwad}}</ref> [[Commemorative coin]]s of {{INR}}125 were released on 4 September 2015 and 6 December 2015 to honour the 125th anniversary of the births of [[Sarvepalli Radhakrishnan]] and [[B. R. Ambedkar]], respectively.<ref>{{cite web |url=http://www.financialexpress.com/article/industry/banking-finance/teachers-day-pm-narendra-modi-releases-rs-125-coins-in-honour-of-dr-s-radhakrishnan/130734/ |title=Teachers' day: PM Narendra Modi releases Rs 125 coin in honour of Dr S Radhakrishnan |date=4 September 2016 |work=[[The Financial Express (India)|The Financial Express]] |access-date=10 November 2016 |url-status=dead |archive-url=https://web.archive.org/web/20160423104638/http://www.financialexpress.com/article/industry/banking-finance/teachers-day-pm-narendra-modi-releases-rs-125-coins-in-honour-of-dr-s-radhakrishnan/130734/ |archive-date=23 April 2016 }}</ref><ref>{{cite web |url=http://www.financialexpress.com/article/economy/pm-narendra-modi-releases-rs-10-rs-125-commemorative-coins-honouring-dr-babasaheb-ambedkar/175185/ |title=PM Narendra Modi releases Rs 10, Rs 125 commemorative coins honouring Dr Babasaheb Ambedkar |date=6 December 2016 |work=[[The Financial Express (India)|The Financial Express]] |access-date=10 November 2016 |url-status=dead |archive-url=https://web.archive.org/web/20160423090709/http://www.financialexpress.com/article/economy/pm-narendra-modi-releases-rs-10-rs-125-commemorative-coins-honouring-dr-babasaheb-ambedkar/175185/ |archive-date=23 April 2016 }}</ref>

In 1861, the [[British Raj|Government of India]] introduced its first paper money: {{INR}}10 note in 1864, {{INR}}5 note in 1872, {{INR}}10,000 note in 1899, {{INR}}100 note in 1900, {{INR}}50 note in 1905, {{INR}}500 note in 1907 and {{INR}}1,000 note in 1909. In 1917, {{INR}}1 and {{INR}}2{{frac|1|2}} notes were introduced. The [[Reserve Bank of India]] began banknote production in 1938, issuing {{INR}}2, {{INR}}5, {{INR}}10, {{INR}}50, {{INR}}100, {{INR}}1,000 and {{INR}}10,000 notes while the government continued issuing {{INR}}1 note but demonetized the {{INR}}500 and {{INR}}2{{frac|1|2}} notes.

The design of banknotes is approved by the [[Government of India|central government]], on the recommendation of the central board of the [[Reserve Bank of India]].<ref name="rbi" /> 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 {{INR}}[[Indian 10-rupee note|10]] and {{INR}}500 banknotes. The printing of {{INR}}[[Indian 5-rupee note|5 notes]] (which had stopped earlier) resumed in 2009.

As of 26 April 2019, current circulating banknotes are in denominations of {{INR}}[[Indian 5-rupee note|5]], {{INR}}[[Indian 10-rupee note|10]], {{INR}}[[Indian 20-rupee note|20]], {{INR}}[[Indian 50-rupee note|50]] and {{INR}}[[Indian 100-rupee note|100]] from the [[Mahatma Gandhi Series]] and in denominations of ₹10, ₹20,<ref>{{Cite web|url=https://m.rbi.org.in//Scripts/BS_PressReleaseDisplay.aspx?prid=46913|title=Reserve Bank of India – Press Releases|website=rbi.org.in|access-date=26 April 2019}}</ref> ₹50, {{INR}}100, {{INR}}[[Indian 200-rupee note|200]], {{INR}}[[Indian 500-rupee note|500]] and {{INR}}[[Indian 2000-rupee note|2,000]] from the [[Mahatma Gandhi New Series]].

|+Current circulating banknotes

| style="text-align:center;"| [[File:5 Rupees (Obverse).jpg|114px]]

| style="text-align:center;"| [[File:5 Rupees (Reverse).jpg|114px]]

| style="text-align:center;"| [[Indian 5-rupee note|{{INR}}5]] || 117&nbsp;mm&nbsp;×&nbsp;63&nbsp;mm || [[Green]] || rowspan="9" | [[Mahatma Gandhi]] || [[Tractor]] || rowspan="9" | [[Mahatma Gandhi]] and electrotype denomination || 2002 / 2009 || Limited

| style="text-align:center;"| [[Indian 10-rupee note|{{INR}}10]]|| 123&nbsp;mm&nbsp;×&nbsp;63&nbsp;mm ||[[Shades of brown#Brown|Brown]]||[[Konark Sun Temple]] || 2018 || Wide

| style="text-align:center;"| [[Indian 20-rupee note|{{INR}}20]] || 129&nbsp;mm&nbsp;×&nbsp;63&nbsp;mm ||[[Shades of yellow|Yellow]]||[[Ellora Caves]] || 2019 || Wide

| style="text-align:center;"| [[Indian 50-rupee note|{{INR}}50]] || 135&nbsp;mm&nbsp;×&nbsp;66&nbsp;mm ||[[Cyan]]||[[Hampi]] with [[Chariot]] || 2017 || Wide

|142&nbsp;mm&nbsp;×&nbsp;66&nbsp;mm

| style="text-align:center;"| [[Indian 200-rupee note|{{INR}}200]] || 146&nbsp;mm&nbsp;×&nbsp;66&nbsp;mm || [[Orange (colour)|Orange]]  ||[[Sanchi Stupa]] || 2017 || Wide

| style="text-align:center;"|[[Indian 500-rupee note|{{INR}}500]] || 150&nbsp;mm&nbsp;×&nbsp;66&nbsp;mm || [[Shades of gray#Stone gray|Stone grey]] || [[Red Fort]]

| style="text-align:center;"| [[Indian 2000-rupee note|{{INR}}2000]] || 166&nbsp;mm&nbsp;×&nbsp;66&nbsp;mm || [[Magenta]] || [[Mars Orbiter Mission|Mangalyaan]]

The new Indian banknote series feature a few micro printed texts on various locations. The first one lies on the inner surface of the left temple of Gandhi's spectacles that reads "भारत" ([[Names for India#Bhārata|Bhārata]]) which means India. The next one (which are printed only on 10 and 50 denominations) is placed on the outer surface of the right temple of Gandhi's spectacles near his ear and reads "RBI" ([[Reserve Bank of India]]) and the face value in numerals "10" or "50". The last one is written on both sides of Gandhi's collar and reads "भारत" and "INDIA" respectively.

 

Officially, the Indian rupee has a market-determined exchange rate. However, the [[Reserve Bank of India]] trades actively in the USD/INR currency market to impact [[Trade weighted index|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 rate]]s, and often create persistent [[arbitrage]] opportunities against the RBI.<ref>[http://icrier.org/pdf/wp108.pdf "Convertibility: Patnaik, 2004"] (PDF). Indian Council for Research on International Economic Relations.</ref> Unlike [[People's Republic of China|China]], successive [[Government of India|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.<ref>{{cite news|last=Chandra |first=Shobhana |url=https://www.bloomberg.com/apps/news?pid=20601080&sid=alS4DteWrtco&refer=asia |title='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 |publisher=Bloomberg L.P. |date=26 September 2007 |access-date=5 November 2011}}</ref>

RBI also exercises a system of [[capital control]]s in addition to (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.

* 1991&nbsp;– 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.<ref>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}} .</ref>

* 1997&nbsp;– 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 [[1997 Asian Financial Crisis|East Asian financial crisis]].

* 2006&nbsp;– [[Prime Minister]] [[Manmohan Singh]] asked the [[P. Chidambaram|Finance Minister]] and the [[Reserve Bank of India]] to prepare a road map for moving towards [[capital account convertibility]].<ref>{{cite web|title=The 'Fuller Capital Account Convertibility Report'|date=31 July 2006|url=http://rbidocs.rbi.org.in/rdocs/PublicationReport/Pdfs/72250.pdf|access-date=23 January 2009|url-status=dead|archive-url=https://web.archive.org/web/20090205135704/http://rbidocs.rbi.org.in/rdocs/PublicationReport/Pdfs/72250.pdf|archive-date=5 February 2009}}</ref>

* 2016&nbsp;– the [[Government of India]] announced the [[2016 Indian banknote demonetisation|demonetisation]] of all {{INRConvert|500}} and {{INRConvert|1000}} banknotes of the [[Mahatma Gandhi Series]].<ref name="withdrawaloflegal">{{cite web|url=https://rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=38520|title=Withdrawal of Legal Tender Status for ₹ 500 and ₹ 1000 Notes: RBI Notice (Revised)|date=8 November 2016|publisher=[[Reserve Bank of India]]|access-date=8 November 2016}}</ref> The government claimed that the action would curtail the shadow economy and crack down on the use of illicit "black money" and counterfeit cash to fund illegal activity and terrorism.<ref name="India Today2">{{cite web|url=http://indiatoday.intoday.in/story/live-pm-narendra-modi-addresses-nation/1/805755.html|title=Here is what PM Modi said about the new Rs 500, Rs 2000 notes and black money|date=8 November 2016|access-date=9 November 2016|work=[[India Today]]}}</ref><ref>{{cite web|url=http://timesofindia.indiatimes.com/india/Rs-500-and-Rs-1000-notes-pulled-out-of-circulation-immediately-PM-Narendra-Modi/articleshow/55315473.cms|title=Notes out of circulation|date=8 November 2016|work=[[The Times of India]]}}</ref>

==== Pre - Independence ====

For almost a century following the [[Great Recoinage of 1816]], and adoption of the [[Gold Standard]], until the outbreak of World War I, the silver backed Indian rupee lost value against a basket of Gold pegged currencies, and was periodically devalued to reflect the then current [[gold silver ratio|gold to silver reserve ratios]], see above. In 1850 the official conversion rate between a [[pound sterling]] and the rupee was £0 / 2[[shilling|s]] / 0d (or £1:₹10), while between 1899 and 1914 the conversion rate was set at £0 / 1[[shilling|s]] / 4[[Penny|d]] (or £1:₹15), for comparison during this period the US dollar was pegged at £1:$4.79.

==== Post - Independence ====

Post Independence India followed [[Par value]] system of exchange till 1971. The country switched to [[Fixed exchange rate system|pegged system]] in 1971 and graduated to basket peg againstfive major currencies from 1975. After the 1991 [[Economic liberalisation in India]] the currency exchange rates became market controlled.<ref>{{Cite web |title=Reserve Bank of India - Publications |url=https://m.rbi.org.in/scripts/PublicationsView.aspx?id=12252 |access-date=2022-04-19 |website=m.rbi.org.in}}</ref>

The first major impact on exchange rate after Independence was the devaluation of sterling against the US dollar in 1949, this impacted currencies that maintained a peg to the sterling, such as the Indian rupee.<ref>{{Cite web |title=Pound devalued 30 per cent {{!}} 1940-1949 {{!}} Guardian Century |url=https://www.theguardian.com/century/1940-1949/Story/0,,105127,00.html |access-date=2022-04-19 |website=www.theguardian.com}}</ref> The next major episode was in 1966 when Indian rupee was devaluated by 57% against [[United States dollar]]. Correspondingly the rates against [[Pound sterling]] too suffered depreciation.<ref>{{Cite web |author=Sujay Gupta|date=Jun 7, 2016 |title=Forgotten legacy of 6/6/66 - Times of India |url=https://timesofindia.indiatimes.com/business/india-business/forgotten-legacy-of-6/6/66/articleshow/52629071.cms |access-date=2022-04-19 |website=The Times of India |language=en}}</ref> In 1971 August, when the [[Bretton Woods system]] India initially announced that it will maintain a fixed rate of 1 USD = Rs. 7.50 and leave [[Pound sterling]] floating.<ref>{{Cite journal |last=Verghese |first=S. K. |date=1973 |title=International Monetary Crises and the Indian Rupee |url=https://www.jstor.org/stable/4362898 |journal=Economic and Political Weekly |volume=8 |issue=30 |pages=1342–1348 |issn=0012-9976}}</ref> However, by the end of 1971, following [[Smithsonian Agreement]] and subsequent devaluation of [[United States dollar]], [[India]] pegged Indian rupee with [[Pound sterling]] once again with a rate of £1 = Rs. 18.9677.<ref>{{Cite journal |last=Wadhva |first=Charan D. |last2=Paul |first2=Samuel |date=1973 |title=The Dollar Devaluation and India's Balance of Payments |url=https://www.jstor.org/stable/4362402 |journal=Economic and Political Weekly |volume=8 |issue=10 |pages=517–522 |issn=0012-9976}}</ref> In the above period [[India]] had a non - commercial exchange rate with [[Soviet Union]]. The [[Ruble]] - [[Rupee]] rates were announced by [[Soviet Union]] since [[Ruble]] wasn't a freely traded currency and the commercial trade between both nations use to take place in rupee trade account following the [[India–Russia relations|India–Soviet Trade Treaty 1953.]]

In September 1975, exchange rate of Indian rupee started to be determined on the basis of basket peg. The details of currencies which forms the basket and its weightage were kept confidentially by [[Reserve Bank of India]] and the exchange rate of rupee on the basis of market fluctuation of these currencies were periodically announced by RBI.<ref>{{Cite magazine |author=M. K. Tikku |date=April 7, 2015 |title=High-powered Indian team of financial experts to visit Moscow to sort out rouble-rupee exchange rate differences |url=https://www.indiatoday.in/magazine/indiascope/story/19760531-high-powered-indian-team-of-financial-experts-to-visit-moscow-to-sort-out-rouble-rupee-exchange-rate-differences-819182-2015-04-07 |access-date=2022-04-19 |magazine=India Today |language=en}}</ref><ref>{{Cite journal |last=Verghese |first=S. K. |date=1979 |title=Exchange Rate of Indian Rupee since Its Basket Link |url=https://www.jstor.org/stable/4367782 |journal=Economic and Political Weekly |volume=14 |issue=28 |pages=1160–1165 |issn=0012-9976}}</ref>

The next major change that occurred to Indian Rupee was devaluation by about 18% in July 1991 following the [[Balance of payments|Balance of payment]] crisis.<ref>{{Cite web |title=Reserve Bank of India |url=https://www.rbi.org.in/commonman/English/History/Scripts/Chron1991to2000.aspx |access-date=2022-04-19 |website=www.rbi.org.in}}</ref> Thereafter, in March 1992, Liberalized Exchange Rate Management System was introduced.

|+ Indian rupees per currency unit averaged over the year<ref name="auto">{{cite web|title=FXHistory: historical currency exchange rates |publisher=OANDA Corporation |url=http://www.oanda.com/convert/fxhistory |format=database |access-date=1 September 2009 |archive-url=https://www.webcitation.org/5EspRlpwF?url=http://www.oanda.com/convert/fxhistory |archive-date=4 April 2006 |url-status=live }}</ref><ref name="auto1">{{cite web| title= The fallacy of 'dollar = rupee' in 1947 | publisher = DNA | url = http://www.dnaindia.com/analysis/standpoint-the-fallacy-of-dollar-rupee-in-1947-1876776 | access-date = 19 August 2013}}</ref>

! Currency !! [[ISO 4217|ISO code]] !! 1947 !! 1966 !! 1995!! 1996 !! 2000 !! 2004 !! 2006 !! 2007 !! 2008 !! 2009 !! 2010 !! 2013 !! 2014 !! 2015 !! 2016 !! 2017 !! 2018 !! 2019 !! 2020