What is the Currency of India Called? Exchange Rates, Symbols, and Notes

Did you know that the Indian Rupee, represented by ₹, has deep historical significance and is a key component of India's economic life? The rupee, being the official currency of India, is not just an exchange medium but a symbol of the nation's independence and growth. 

It was first introduced in 1947 when India gained independence and is further subdivided into 100 paise, more commonly known as paisa. The Reserve Bank of India (RBI) manages its circulation and policies to ensure its stability and value in the global market.

Denominations of the Indian Rupee

The Indian Rupee is available in both coins and banknotes, with various denominations currently in circulation:

Coins

• 50 paise
• ₹1
• ₹2
• ₹5
• ₹10
• ₹20

Banknotes

• ₹2 (rarely used)
• ₹5
• ₹10
• ₹20
• ₹50
• ₹100
• ₹200
• ₹500
• ₹2000

Historically, the Indian Rupee has undergone several changes to its design and security features to combat counterfeiting and adapt to economic needs. For instance, in 2016, the ₹500 and ₹1000 notes were demonetized to curb black money, leading to the introduction of new denominations like the ₹2000 note.

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Ancient Origins

The history of the Indian Rupee dates to around the 6th century BCE when Indian kingdoms began minting coins. Known as Puranas or Karshapanas, these early coins were made in silver and various other metals. 

The term rūpa originated from this era, which implies form or shape in Sanskrit, meaning how important silver coinage was during trade and commercial activities. Notably, the Arthashastra, written by Chanakya, mentions various types of coins used during the Mauryan Empire, including silver coins called rūpyarūpa.

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Mughal Period and British Influence

By the end of the 16th century, the silver rupee, a standard currency unit, had been introduced to the Mughal Empire. The rupee was subdivided into 16 annas. The British East India Company adopted this in 1671, with consequent huge changes in value during the following hundred and 150 years. 

By the 1830s, after British colonial domination had been consolidated, the Coinage Act of 1835 was passed, which standardized currency in India and brought about uniform coinage issued by the British government.

The India Council Bill of the 1870s mandated that payments for Indian exports be made in paper bills instead of precious metals, leading to a decline in silver inflow and affecting the value of the rupee. The Fowler Commission of the 1890s recommended that the country shift to a gold standard for better stability.

Value of Indian Rupee Against Other Currencies

The value of the Indian Rupee fluctuates against other global currencies, influenced by various economic factors such as trade flows and investment trends. As of late 2024, the exchange rates for some popular currencies are approximately as follows:

• 1 US Dollar (USD) = ₹84.45
• 1 Euro (EUR) = ₹88.93
• 1 British Pound (GBP) = ₹106.89
• 1 Kuwaiti Dinar (KWD) = ₹270.

The Indian Rupee is highly significant in foreign exchange markets, where it is traded heavily. Its value can impact India's balance of trade and overall economic growth. The rupee is also accepted in neighbouring countries like Nepal, where it is pegged to the Nepalese Rupee.

The Indian Rupee is an important part of the Indian economy, used for internal transactions as well as international trade. Its diversified denominations and changing design elements reflect the rich heritage of the country while adjusting to modern economic challenges. As India continues to grow on the world stage, tracking the value of the rupee against other currencies is crucial to understanding its economic landscape.

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