Indian rupee

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Indian rupee रुपया (Hindi)
1000-rupee note Coins of various denominations
ISO 4217 Code	INR
User(s)	India
Inflation	5.3%
Source	The World Factbook, 2006 est.
Pegged by	INR = Bhutanese ngultrum INR = 1.6 Nepalese rupee
Subunit
1/100	paisa
Symbol	Rs, ₨, रु, रू, or ৳
Coins
Freq. used	25, 50 paise, Re. 1, Rs. 2, Rs. 5
Rarely used	5, 10, 20 paise
Banknotes
Freq. used	Rs. 5, Rs. 10, Rs. 20, Rs. 50, Rs. 100, Rs. 500
Rarely used	Rs. 1000
Central bank	Reserve Bank of India
Website	www.rbi.org.in
Mint	India Government Mint

The rupee (Hindi: रुपया) is the currency of India. The issuance of the currency is controlled by the Reserve Bank of India. The most commonly used symbol for the rupee are Rs, ₨ and रू. The ISO 4217 code for the Indian rupee is INR.

In most parts of India, the rupee is known as the rupee, roopayi, rupaye, rubai or one of the other terms derived from the Sanskrit rupyakam [1] (Devnagari: रूप्यकं), raupya meaning silver; rupyakam meaning (coin) of silver. However, in the Bengali and Assamese languages, spoken in Assam, Tripura, Orissa and West Bengal, the rupee is known as a Taka, symbol ৳, and is written as such on Indian banknotes.

The modern rupee is subdivided into 100 paise (singular paisa). As is standard in Indian English, large values of Indian rupees are counted in terms of thousands, lakh (100 thousand, in digits 1,00,000), crore (100 lakhs, in digits 1,00,00,000) and arawb (100 crore, in digits 1,00,00,00,000). The use of million or billion, as is standard in American or British English, is far less common. For example, the amount INR 1,25,84,729.25 is spoken as one crore twenty-five lakhs eighty-four thousand seven hundred twenty-nine rupees and twenty-five paise (see Indian numbering system).

Contents 1 History 2 International use 3 Coins 3.1 East India Company, -1862 3.2 Regal Issues, 1862-1947 3.3 Independent Issues, Predecimal, 1950-1957 3.4 Independent Issues, Decimal, 1957- 4 Banknotes 4.1 British India, 1861-1947 4.2 Independent Issues, 1949- 4.3 Language panel 4.4 Tactile features 4.5 Security features 5 See also 6 External links

[edit] History

Main article: History of the rupee

India was one of the earliest issuers of coins (circa 6th Century BC). The first "rupee" is believed to have been introduced by Sher Shah Suri (1486-1545), based on a ratio of 40 copper pieces (paisa) per rupee. Among the earliest issues of paper rupees were those by 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), amongst others.

During British rule, and the first decade of independence, it was subdivided into 16 annas. Each anna was subdivided into 4 paise (also written pice) or 12 pies. Until 1815, the Madras Presidency also issued a currency based on the fanam, with 12 fanams equal to the rupee.

Historically, the rupee, derived from the Sanskrit word raupya, which means silver, 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 vast quantities of silver in the U.S. and various European colonies resulted in a decline in the relative value of silver to gold. Suddenly the standard currency of India could not buy as much from the outside world. This event was known as "the fall of the rupee."

In 1898, the rupee was tied to the gold standard through the British pound by pegging the rupee at a value of 1 shillings 4 pence (i.e., 15 rupees = 1 pound). In 1920, the rupee was increased in value to 2 shillings (10 rupees = 1 pound). However, in 1927, the peg was once more reduced, this time to 1 shilling 6 pence (13⅓ rupees = 1 pound). This peg was maintained until 1966, when the rupee was devalued and pegged to the U.S. dollar at a rate of 7.5 rupees = 1 dollar (at the time, the rupee became equal to 11.4 British pence). This peg lasted until the U.S. dollar devalued in 1971.

The Indian rupee replaced the Danish Indian rupee in 1845, the French Indian rupee in 1954 and the Portuguese Indian escudo in 1961. Following independence in 1947, the Indian rupee replaced all the currencies of the previously autonomous states. Some of these states had issued rupees equal to those issued by the British (such as the Travancore rupee). Other currencies included the Hyderabad rupee and the Kutch kori.

In 1957, decimalisation occurred and the rupee was 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, not unlike the usage of "bit" in American English for ⅛ dollar.

The two-rupee banknote

British Indian 1 rupee (1917)

French Indian 1 rupee (1938)

One rupee - Obverse

[edit] International use

With Partition, the Pakistani rupee came into existence, initially using Indian coins, and Indian currency notes simply overstamped with Pakistan. In previous times, the Indian rupee was regarded as an official currency of other countries, including Kuwait, Bahrain, Qatar, the Trucial States (now the UAE), and Malaysia. The Gulf rupee, also known as the Persian Gulf rupee (XPGR), was introduced by the Indian government as a replacement for the Indian rupee for circulation exclusively outside the country with the Reserve Bank of India [Amendment] Act, May 1, 1959. This creation of a separate currency was an attempt to reduce the strain put on India's foreign reserves by gold smuggling. After India devalued the rupee on June 6, 1966, those countries still using it - Oman, Qatar and what is now the United Arab Emirates (known as the Trucial States until 1971) - replaced the Gulf rupee with their own currencies. Kuwait and Bahrain had already done so in 1961 and 1965 respectively.

The Indian rupee is also linked with the Bhutanese Ngultrum. The Indian rupee is also accepted in towns of Nepalese side of Nepal-India border and some Indian shops in the United Kingdom.

[edit] Coins

[edit] East India Company, -1862

The three Presidencies established by the British East India Company (Bengal, Bombay and Madras) each issued their own coinages up to 1835. All three issued rupees together with fractions down to ⅛ and ¹⁄₁₆ rupee in silver. Madras also issued 2 rupees coins.

Copper denominations were more varied. Bengal issued 1 pie, ½, 1 and 2 paise. Bombay issued 1 pie, ¼, ½, 1, 1½, 2 and 4 paise. In Madras, there were copper coins for 2, 4 pies, 1, 2 and 4 paisa, with thefirst two denominated as ½ and 1 dub or ¹⁄₉₆ and ¹⁄₄₈ rupee. Note that Madras also issued the Madras fanam until 1815.

All three Presidencies issued gold mohurs and fractions of mohurs, including ¹⁄₁₆, ⅛, ¼ and ½ in Bengal, ¹⁄₁₅ (a gold rupee) and ⅓ (pancia) in Bombay and ¼, ⅓ and ½ in Madras.

In 1835, a single coinage for the EIC was introduced. It consisted of copper ¹⁄₁₂, ¼ and ½ anna, silver ¼, ½ and 1 rupee and gold 1 and 2 mohurs. In 1841, silver 2 annas were added, followed by copper ½ pice in 1853. The coinage of the EIC continued to be issued intil 1862, even after the Company had been taken over by the Crown.

[edit] Regal Issues, 1862-1947

In 1862, coins were introduced which are referred to as Regal issues. They bore the portrait of Queen Victoria and the designation "India". Denominations were ¹⁄₁₂ anna, ½ pice, ¼ and ½ anna (all in copper), 2 annas, ¼, ½ and 1 rupee (silver) and 5 and 10 rupees and 1 mohur (gold). The gold denominations ceased production in 1891 whilst no ½ anna coins wereissued dated later than 1877.

In 1906, bronze replaced copper for the lowest three denominations and in 1907, a cupro-nickel 1 anna was introduced. In 1918 and 1919, cupro-nickel 2, 4 and 8 annas were introduced, although the 4 and 8 annas coins were only issued until 1921 and did not replace their silver equivalents. Also in 1918 and 1919, the Bombay mint struck gold sovereigns and 15 rupee coins identical in size to the sovereigns as an emergency measure due to the First World War.

In the early 1940s, several changes were implemented. The ¹⁄₁₂ anna and ½ pice ceased production, the ¼ anna was changed to a bronze, holed coin, cupro-nickel and nickel-brass ½ anna coins were introduced, nickel-brass was used to produce some 1 and 2 annas coins, and the composition of the silver coins was reduced from 91.7% to 50%. The last of the regal issues were cupro-nickel ¼, ½ and 1 rupee pieces minted in 1946 and 1947.

[edit] Independent Issues, Predecimal, 1950-1957

Indias first coins after independence were issued in 1950. They were 1 pice, ½, 1 and 2 annas, ¼, ½ and 1 rupee denominations. The sizes and compositions were the same as the final Regal issues, except for the 1 pice, which was bronze but not holed.

[edit] Independent Issues, Decimal, 1957-

The first decimal issues of India consisted of 1, 2, 5, 10, 25 and 50 naye paise and 1 rupee. The 1 naya paisa was bronze, the 2, 5 and 10 naye paise were cupro-nickel and the 25 and 50 naye paise and 1 rupee were nickel. In 1964, the word naya(e) was removed from all the coins. Between 1964 and 1967, aluminium 1, 2, 3, 5 and 10 paise were introduced. In 1968, nickel-brass 20 paise were introduced, replaced by aluminium coins in 1982. Between 1972 and 1975, cupro-nickel replaced nickel in the 25 and 50 paise and the 1 rupee. In 1982, cupro-nickel 2 rupees coins were introduced. In 1988, stainless steel 10, 25 and 50 paise were introduced, followed by 1 rupee coins in 1992. Also in 1992, the 5 rupee coin was introduced.

The coins commonly in circulation are 25 and 50 paise, 1, 2 and 5 rupees. 5, 10, and 20 paise coins, although valid, have become increasingly rare in regular usage.

Circulating Coins [2]
Value	Technical parameters				Description		Date of
	Diameter	Mass	Composition	Shape	Obverse	Reverse	first minting	last minting
5 paise	22 mm (diagonal)	1.5 g	Aluminium	Square	Emblem of India	Value	1957	1994
10 paise	16 mm	2 g	Ferritic stainless steel	Circular			1961	1998
20 paise	27 mm (longest)	2.2 g	Aluminium	Hexagon			1982	1994
25 paise	19 mm	2.83 g	Ferritic stainless steel	Circular	Emblem of India, value	Rhinoceros	1973	–
50 paise	22 mm	3.79 g				Parliament of India, map of India		–
Re. 1	25 mm	4.85 g			Emblem of India	Value, wheat	1976	–
Rs. 2	26 mm	6 g	Cupronickel	Hendecagon	Emblem of India, value	Flag and map of India	1990	–
Rs. 5	23 mm	9 g		Circular	Emblem of India	Value, flower	1992	–
For table standards, see the coin specification table.

The coins are minted at the four locations of the India Government Mint.

[edit] Banknotes

[edit] British India, 1861-1947

In 1861, the Government of India introduced its first paper money, 10 rupees notes. These were followed by 20 rupees notes in 1864, 5 rupees in 1872, 10,000 rupees in 1899, 100 rupees in 1900, 50 rupees in 1905, 500 rupees in 1907 and 1000 rupees in 1909. In 1917, 1 and 2½ rupees notes were introduced.

The Reserve Bank of India began note production in 1938, issuing 2, 5, 10, 100 and 1000 rupees notes, whilst the Government continued to issue 1 rupee notes.

[edit] Independent Issues, 1949-

After independence, new designs were introduced to remove the portrait of the King. The government continued to issue the 1 rupee note, whilst the Reserve Bank issued other denemoniations, including the 5000 and 10,000 rupees notes introduced in 1949. In the 1970s, 20 and 50 rupees notes were introduced but denominations higher than 100 rupees were demonetized in 1978. In 1987, the 500 rupees note was reintroduced, followed by the 1000 rupees in 2000.

Currently circulating notes are:

Mahatma Gandhi Series [3]
Image Obverse	Value	Dimensions	Main Colour	Description		Date of issue
				Obverse	Reverse
	Rs. 5	117 × 63 mm	Green	Mahatma Gandhi	Tractor	2002
	Rs. 10	137 × 63 mm	Orange-violet		Rhinoceros, elephant, tiger	1996
	Rs. 20	147 × 63 mm	Red-orange		Palm trees	2002
	Rs. 50	147 × 73 mm	Violet		Parliament of India	1997
	Rs. 100	157 × 73 mm	Blue-green at center, brown-purple at 2 sides		Himalaya Mountains	1996
N/A	Rs. 500	167 × 73 mm	Olive and yellow		Dandi March	1997
			Yellow			2000
	Rs. 1000	177 × 73 mm	Pink		Economy of India	2000
These images are to scale at 0.7 pixels per millimetre, a standard for world banknotes. For table standards, see the banknote specification table.

The current series, which began in 1996, is called the Mahatma Gandhi series. Currency notes are printed at the Currency Note Press, Nashik, Bank Note Press, Dewas, Bharatiya Note Mudra Nigam (P) Limited presses at Salboni and Mysore and at the Watermark Paper Manufacturing Mill, Hoshangabad.

Each banknote has its amount written in 17 languages (English & Hindi on the front, and 15 others on the back) illustrating the diversity of the country. ATMs usually give Rs. 100 and Rs. 500 notes, but not Rs. 1000 notes. Therefore, Rs. 1000 notes are analogous to the higher valued notes of the United States dollar and the euro.

In recent years, the banknotes were slightly modified to include see through registration on the left side of obverse. In addition, the year is now printed on the reverse. EURion constellation was added to Rs. 100. The revised Rs. 10, 20 were issued in 2006, and Rs. 50, 100, 1000 in 2005.

[edit] Language panel

The language panel on Indian rupee banknotes display the denomination of the note in all the national languages of India.

[edit] Tactile features

Source

Indian currency notes and coins have various tactile and visual features to assist significantly large number of its illiterate population, and help in speedy identification of various denominations.

• Size — All notes and coins have various sizes.
• Colour — All notes have different colour combinations.
• Texture — Most of the higher denomination notes have their denominations and some of the features embossed. Also, different geometric shapes (triangle, rectangle, etc.) are embossed on left of watermark window for visually impaired.

[edit] Security features

• Watermark — White side panel of notes has Mahatma Gandhi watermark.
• Security thread — All notes have a silver security band with inscriptions visible when held against light.
• Latent image — Higher denominational notes display note's denominational value in numerals when held horizontally at eye level.
• Microlettering — Numeral denominational value is visible under magnifying glass between security thread and watermark.
• Fluorescence — Number panels glow under ultra-violet light.
• Optically variable ink — Notes of Rs. 500 and Rs. 1000 have their numerals printed in optically variable ink. Number appears green when note is held flat but changes to blue when viewed at angle.
• Back-to-back registration — Floral design printed on front and back of note coincides when viewed against light.

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[edit] See also

• Indian rupee convertibility
• Economy of India

[edit] External links

• Don's World Coin Gallery - India
• Ron Wise's World Paper Money - India ^{Mirror site}
• Tables of Modern Monetary Systems by Kurt Schuler - Asia ^{Mirror site}
• The Global History of Currencies - India
• Global Financial Data currency histories table
• Problem of the Rupee Book by B. R. Ambedkar. History of the Rupee till 1923 A.D.
• www.coins.in
• History and Learning about banknotes from India
• A website that tracks the spread and use of the Indian banknotes

v • d • e Currencies named rupee or similar
Current	Indian rupee · Indonesian rupiah · Maldivian rufiyaa · Mauritian rupee · Nepalese rupee · Pakistani rupee · Seychellois rupee · Sri Lankan rupee
Defunct	Afghan rupee · Bhutanese rupee · Burmese rupee · Danish Indian rupee · (British) East African rupee · French Indian rupee · German East African rupie · Gulf rupee · Hyderabad rupee · Italian Somaliland rupia · Javan rupee · Netherlands Indian roepiah · Portuguese Indian rupia · Riau rupiah · Travancore rupee · West New Guinean rupiah · Zanzibari rupee
Fictional	Hylian rupee
See also	History of the rupee

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