Facts about Indian Currency

Indian currency has a fascinating history, and there are several interesting facts about it. Here’s a look at some key facts about the Indian Rupee (INR) and its history:

1. The Indian Rupee (INR)

1. The official currency of India is the Indian Rupee (INr), abbreviated as INR.
2. The symbol for the Indian Rupee (₹) was officially adopted in 2010, designed by D Udaya Kumar, an Indian designer.
3. The word “rupee” is derived from the Sanskrit word “Rupya”, which means “a coin of silver.”
4. The Indian Rupee is subdivided into 100 paise. One rupee is made up of 100 smaller units called “paise.”
5. Rupee notes are issued by the Reserve Bank of India (RBI), which is the central bank of India, and the Indian government.

2. History of Indian Currency

6. The first official currency of India was issued in 6th century BCE by the Mahajanapadas (ancient kingdoms), which used silver coins called puranas or karshapanas.
7. Sher Shah Suri, the founder of the Suri Empire in the 16th century, is credited with introducing the first standardized silver currency in India, called the “Rupiya”.
8. The British East India Company introduced the “Company Raj” currency in India, which was a mixture of gold and silver coins.
9. The modern currency system, as we know it today, was introduced after India gained independence in 1947 when the Reserve Bank of India became the sole issuer of currency notes.
10. Mahatma Gandhi‘s image was first placed on Indian currency notes in 1949, a year after India’s independence.

3. Currency Notes & Coins

11. The current banknotes in circulation are issued in denominations of ₹10, ₹20, ₹50, ₹100, ₹200, ₹500, and ₹2,000.
12. The ₹2,000 note was introduced in 2016 after the government’s demonetization initiative, though it has since been gradually phased out in 2023.
13. Coins are issued in denominations of ₹1, ₹2, ₹5, and ₹10.
14. The ₹500 note was redesigned in 2016 after the demonetization move, and it features a portrait of Mahatma Gandhi on the front.
15. Indian currency notes are printed with unique security features like watermarks, security threads, and microprinting to prevent counterfeiting.

4. The Indian Rupee Symbol

16. The ₹ symbol was officially adopted on July 15, 2010, after a global competition was held to design a symbol for the Indian Rupee.
17. The symbol is a blend of the Devanagari letter “र” (Ra) and the Roman capital letter “R,” representing India’s cultural heritage and modern economy.
18. The Indian Rupee symbol is used internationally and is seen in stock markets, forex trading, and international currency exchanges.

5. Currency in Different Languages

19. The term for the Rupee is used in many languages across India. For example, in Hindi, it’s referred to as “रुपया” (Rupaya), in Tamil as “ரூபாய்” (Rupai), and in Bengali as “টাকা” (Taka).
20. India is the largest country in the world to use the rupee as a currency, though some other countries, such as Pakistan, Sri Lanka, Nepal, and Mauritius, also use currencies called “rupees.”

6. Security Features

21. Indian currency notes have several security features such as watermarks, security threads, micro-printing, UV ink, and latent images.
22. The 500 and 2000 rupee notes have security threads embedded with microtext that reads “भारत” (Bharat) and “RBI” when viewed under UV light.
23. Mahatma Gandhi’s image is present on the new currency notes along with the Ashoka Pillar emblem, the RBI governor’s signature, and the reserve bank seal.

7. The 2016 Demonetization

24. On November 8, 2016, the Indian government demonetized the ₹500 and ₹1,000 notes as part of a move to curb black money, fake currency, and corruption.
25. This move led to the replacement of these high-denomination notes with new ones, including the ₹500 note, which was redesigned.
26. The demonetization also led to an increase in the adoption of digital payments in India.

8. International Use of the Rupee

27. The Indian Rupee is not freely convertible in international markets, and its exchange rate is controlled by the Indian government and the Reserve Bank of India.
28. It is, however, widely used in neighboring countries, particularly Nepal, Sri Lanka, Bhutan, and Mauritius.
29. In Bhutan, the Indian Rupee is accepted as legal tender alongside the Bhutanese Ngultrum.

9. Currency Printing

30. The Reserve Bank of India (RBI) is responsible for the printing and circulation of currency in India.
31. Mysuru (formerly Mysore) is home to the India Security Press, which prints most of the currency notes in India.
32. The Security Paper Mill in Hoshangabad supplies the paper used in printing Indian currency.

10. Gold Standard & Economic Impact

33. Historically, India used to be on the gold standard, meaning that the value of the Indian Rupee was directly tied to a fixed quantity of gold. India left the gold standard in the early 20th century.
34. The value of the Indian Rupee fluctuates based on global economic factors, including inflation, trade, foreign investments, and supply-demand dynamics in the global markets.

11. Unique Features of Indian Currency Notes

35. The ₹10 note has a loose thread that changes color when the note is tilted.
36. Color-changing ink is used in several denominations, such as the ₹100 and ₹500 notes, to provide a level of security.
37. Each currency note in India features a unique depiction of an iconic Indian heritage site. For example, the ₹500 note features the Red Fort in Delhi, and the ₹200 note features the Sanchi Stupa.

12. Notes for the Visually Impaired

38. In 2017, the RBI introduced differently designed notes to help visually impaired people distinguish between various denominations.
39. The ₹10, ₹20, ₹50, ₹100, ₹500, and ₹2,000 notes have raised patterns and features that make them more accessible to people with vision impairments.

13. Foreign Exchange

40. The Indian Rupee is not a fully convertible currency in international markets, meaning it cannot be exchanged freely for other currencies on the global forex markets.
41. India has a foreign exchange reserves policy that ensures enough reserves are kept to manage the value of the rupee and stabilize it against inflation and foreign currency fluctuations.

14. Inflation & Value

42. Over time, inflation has significantly affected the value of the Indian Rupee, and prices of goods and services in India have risen as a result.
43. For example, the value of ₹1 in 1950 is equivalent to far more today, reflecting the inflationary effects on currency over decades.

15. Currency Exchange & Forex Trading

44. The exchange rate of the Indian Rupee to other currencies like the US Dollar or Euro fluctuates daily based on market dynamics.
45. Forex markets in Mumbai and other global financial hubs play a key role in setting the exchange rate for the Indian Rupee.

These facts give a comprehensive overview of the Indian Rupee, its significance, history, and role in the global economy.