Indian Rupee

INR - Indian Rupee

The Indian Rupee (INR) is the official currency in circulation in India, symbolized as ₹; its ISO 4217 code is INR. The Rupee is divided into 100 paise (singular: paisa). The issuance and management of the Indian Rupee is the responsibility of the Reserve Bank of India.

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Overview of the Indian Rupee (INR)

The Indian Rupee is also issued as rupaya (Hindi), roopayi (Telugu and Kannada), rubai (Tamil). The symbol of the currency is ₹, Rs, or R$. The ISO code - 4217 is INR. The issuing bank of the Indian Rupee is the Reserve Bank of India. One Indian Rupee = 100 paisa.

The Indian Rupee has been used since ancient times and became the official currency in the 16th century under the Mughal Empire.

The Rupee is one of the main currencies in the South Asian region and is widely used in both domestic and international transactions in India.

Indian Rupee (INR) Denominations

Coins and banknotes in India come in denominations such as:

  • Coins: 50 paisa, 1, 2, 5, 10, 20 Rupee

  • Banknotes: 5, 10, 20, 50, 100, 200, 500, 1000, 2000 Rupee

Indian Rupee (INR) History

The Indian Rupee has its origins in ancient times, around the 6th century BC. India was one of the first places in the world to issue coins, along with the wen of China and the stater of Lydia. Arthashastra, an ancient work, mentioned types of silver, gold, copper, and lead coins.

The Gupta Empire produced a significant amount of silver coins that were clearly influenced by the coins of the earlier Western Satraps of Chandragupta II.

During the reign of Sultan Sher Shah Suri (1540 - 1545), a silver coin weighing 178 grains (or 11.53 grams) was issued, also known as the rupiya. During Babur's time, the exchange rate of brass to silver was about 50:2. Silver coins continued to be used during the Mughal period, the Maratha period, as well as in British India. 

In the 19th century, the discovery of large silver mines in America and European colonies caused the 1873 crisis, affecting the value of silver compared to gold and impacting the Rupee.

In 1835, British India adopted a monometallic currency system based on the Rupee. After the crisis of 1873, India switched to the gold standard in the 1890s. In 1898, the Fowler Committee was established to review the monetary situation and propose the adoption of the gold standard.

During World War I, due to the war, the value of the British pound plummeted, significantly impacting the British economy and forcing them to seek gold from India and other countries. From 1931 to 1941, Britain purchased a large amount of gold from India and other colonies.

After India gained independence in 1947, the Indian Rupee was used to replace the currencies of the former princely states. 

In 1957, the Rupee was decimalized into 100 paise. In 2010, the new Rupee symbol (₹) was officially adopted. In December 2022, India officially introduced the digital Rupee as a central bank digital currency.

Indian Rupee (INR) exchange rate

The value of the Indian Rupee (INR) is primarily determined by the market, but the Reserve Bank of India (RBI) can still intervene in the USD/INR foreign exchange market. The RBI's goal is to minimize exchange rate volatility and maintain the stability of the Rupee without altering the exchange rate trend.

RBI can intervene when necessary to avoid large fluctuations that could impact the macroeconomy. This may include buying or selling USD to adjust the exchange rate.

India imposes strict customs regulations regarding the import and export of Rupees. Travelers going abroad are only allowed to carry a maximum of 25,000 Rupees.

The conversion of currency to and from Rupee is also tightly controlled. This means that it is not always possible to freely convert between Rupee and other currencies.

In the current account, there are no restrictions on currency conversion, allowing international transactions to occur more easily.

However, in the capital account, there are some restrictions on foreign investors. Domestic enterprises can invest capital abroad to expand operations, but domestic households are restricted in international investments.

This exchange rate regime helps India maintain a level of stability in the economy but can also impose restrictions on foreign investment and the ability of domestic households to diversify their assets.

Overall, the exchange rate regime of the Indian Rupee reflects the efforts of the government and the Reserve Bank in balancing the maintenance of exchange rate stability and promoting economic growth.

  • In 1949: Devaluation of the pound

  • In 1966: Devaluation of the rupee by 57% against the USD

  • In 1971: After the Smithsonian Agreement, pegged again to the pound

  • In 1975: Shifted to pegging with a basket of currencies

  • In 1991: Devaluation of 18% during the balance of payments crisis

  • In 1992: Implementation of the Liberalized Exchange Rate Management System, transitioning to a floating regime.

History of the Indian Rupee exchange rate

After the Great Recoinage From 1816 to World War I, the Indian Rupee based on silver depreciated compared to gold-linked currencies and was periodically devalued. The official exchange rate between the British pound and the rupee fluctuated between 1:10 and 1:15 during this period.

The gold-silver ratio increased from 1870 to 1910, making it difficult for the colonial government to pay expenses in England, leading to increased taxes and unrest.

After independence, India adopted a pegged exchange rate system until 1971, then switched to a fixed exchange rate pegged to a basket of currencies in 1975. Since 1991, the Rupee has shifted to a floating exchange rate regime.

Some significant events affecting the Rupee exchange rate after independence include:

Indian Rupee (INR) value

The Indian Rupee (INR) plays an important role in the Indian economy and is increasingly influential in the region as well as on the international stage. 

As the official currency of the world's second most populous country, INR is a pillar of the financial system, supporting domestic transactions and facilitating international trade.

In the domestic economy, the Rupee provides a foundation for price stability and serves as a medium of exchange and a store of value for the people of India. This is also an important tool in implementing the monetary policies of the Reserve Bank of India to control inflation and contribute to economic growth.

On a regional scale, the INR is gradually becoming an important reference currency, especially for neighboring countries like Nepal and Bhutan. India's rapid economic growth has contributed to the increase in the value of the Indian Rupee.

On the international stage, although it is not yet a major reserve currency, the INR is gradually asserting its position. India is also promoting the use of the Rupee in international payments, especially in oil trade, with the aim of reducing dependence on the US dollar. 

In addition, the development of India's financial market and the country's increasingly significant role in the global economy also contribute to the appreciation of the INR on the international stage.

Indian Rupee - Stats

Name
Indian Rupee
Symbol
Minor unit
2
Minor unit symbol
paise
Top INR conversion
INR to EUR

Indian Rupee - Profile

Coins
paise50 , paise100 , paise200 , paise500
Bank notes
₹10 , ₹20 , ₹50 , ₹100 , ₹200 , ₹500 , ₹2000
Users
India

Frequently asked questions about Indian Rupee

Live Currency Rates

CurrencyRateChange
INR/USD
0.01165
INR/EUR
0.0113
INR/GBP
0.00938
INR/EUR
0.0113
INR/CAD
0.01684
INR/AUD
0.01875
INR/JPY
1.83294
INR/NZD
0.0209