For a long time, India did not have a single currency. The first national currency of India appeared only in 1542 during the reign of Sher Shah Suri. It was he who introduced a silver coin weighing about 12 grams into circulation. The name "rupee" comes from Sanskrit and means "coined silver."
Later, when the rupee appeared in India, it began to be used not only in India itself, but also outside it. Today, this currency is in circulation in countries such as the Maldives, Sri Lanka, and Indonesia.
History of the Indian Rupee
History of the Rupee dates back to the reign of Sher Shah Suri, around the 6th century BC. Originally, the coin was a simple round piece of metal equivalent to 40 copper coins known as paisas.
In the 16th century, during the reign of the great Mughal emperor Akbar Indian rupee underwent significant changes - it began to be minted from silver. In addition to the classic round coins, rectangular ones were also in circulation, often engraved with blessings or wishes.
Of origin of the Indian rupee There are two theories:
- The first version is associated with the word "rupa", which means "cattle". In ancient times in India, it was cattle that served as natural money.
- The second, more likely version, comes from the Sanskrit term "rupayakam", which translates as "silver coin".
With the arrival of the British, the Indian financial system underwent dramatic changes. During the colonial period, the quality of rupees indicated their regional origin:
- Bengali (known as "sikka").
- Bombay ("orphan").
- Madras ("arcot").
The first serious devaluation of the rupee occurred in 1883, when the currency lost its competitiveness against the gold currencies of other countries due to the predominance of silver in its coins. This period has even been called the "time of the falling rupee."
Another feature was the issuance of a parallel currency, the fanam, in 1815. Its face value was 12 rupees. However, in 1835, all regional differences were abolished - the British began issuing rupees with images of monarchs, and the first Indian currency featured a portrait of King William IV.
Before independence in 1947, other currencies were also in use in various parts of India:
- Danish rupiah.
- French rupee.
- Portuguese escudo.
The rupee finally became the country's sole currency after India gained independence.
History and features of paper money
The emergence of the Indian rupee in the format of paper banknotes took place back in the 1770s. Currently, the Reserve Bank of India, the country's central financial authority, is responsible for issuing banknotes.
One of the unusual features of Indian money is its physical condition: most banknotes have holes. This is due to the fact that local banks and financial institutions still have a habit of stapling banknotes. Therefore, it is not uncommon to see banknotes with holes. Because of this, unpunched money can be perceived as counterfeit. At the same time, torn banknotes are not accepted for circulation - they can only be exchanged at specialized financial institutions, paying an exchange fee.
Banknote protection and their differences
Modern banknotes are available in several versions and have a high level of security. To prevent counterfeiting, watermarks and security threads are used on banknotes. However, there is another interesting feature - many banknotes are written off. Indians often make marks on them using empty light areas of paper.
Every banknote, regardless of denomination, necessarily depicts Mahatma Gandhi - rupee symbol, and also bears the official seal of the Reserve Bank of India. The reverse of each note contains archaeologically significant images - in particular, the Ashoka Pillar, which is a symbol of the country's ancient history.
Design and color of banknotes
The size and color of Indian banknotes depend on the denomination:
- 5 rupees (6.3 × 11.7 cm) – the reverse depicts scenes of agricultural work.
- 10 rupees (6.3 × 13.7 cm) – the reverse is decorated with representatives of wildlife: an elephant, a Bengal tiger and a rhinoceros. It is through this banknote that you can most often learn about the unique fauna of the country.
- 50 rupees – has a light purple hue, and the reverse side depicts the Indian Parliament building.
- The 100 rupee note is a greenish-lilac color, and its reverse features the Kanchenjunga mountain range, located on the border of India and Nepal. This peak is also known as the "Five Treasures of the Great Snows."
An interesting detail: each subsequent denomination of the banknote is approximately 10 mm longer than the previous one. This is explained by the need to leave free space, which is often used for inscriptions.
Large denomination banknotes and their history
- 500 rupees – the banknote is made in gray-steel shades. Its feature is a mirror image of Mahatma Gandhi, as well as a historical monument – the Red Fort.
- 1000 rupees – This note was withdrawn from circulation in early 2017 as part of the Indian government’s anti-corruption program. Its reverse depicted scenes symbolizing the development of science, agriculture, and industry.
- The 2000 rupee note is a modern, compact note in pink and purple tones. Its reverse features an image of India's first spacecraft, which was launched into Mars orbit in 2014.
Indian banknotes not only serve a financial function, but also reflect the country's rich history and culture. Unique features such as stapling, the habit of writing on banknotes, and thematic images on the reverse make Indian currency recognizable and distinctive. They combine evolution of the Indian rupee: elements of the past, present and even the future, emphasizing the national identity of the country.
Convertibility of Indian currency: features of exchange and use
You can import any foreign currency into India, but the export of local rupees is prohibited. Tourists should take into account an important nuance: if the amount of cash exceeds 2,500 US dollars, it must be declared. The document obtained should be kept until departure, as it will be needed for the return exchange of currency. In this case, only 25% of the total amount deposited is allowed to be converted back. To avoid problems, it is advisable to import part of the funds on international bank cards (Mastercard, Visa, American Express).
Over the past 30 days, the rupee to US dollar exchange rate has fluctuated slightly. The highest recorded value was 0.0117 USD per 1 INR, while the lowest value was 0.0115 USD. The average value for this period was 0.0116 USD. In percentage terms, the rupee to dollar exchange rate has changed by -1.51% over the past month.
Analyzing the dynamics over a 90-day period, it can be seen that the maximum exchange rate value was 0.0119 USD, and the minimum was 0.0115 USD. As a result, the average exchange rate during this time was recorded at 0.0117 USD. The total exchange rate change in percentage terms is -3.26%.
The Indian rupee remains an important economic instrument, reflecting the country's historical development and modern financial realities. It continues to serve as a means of payment and a cultural symbol that carries India's millennia-old heritage.
