Indian rupee- General information
Quick links to banknotes:
- 10 Indian rupees
- 20 Indian rupees
- 50 Indian rupees
- 100 Indian rupees
- 500 Indian rupees - not legal tender
- 1000 Indian rupees - not legal tender
The Indian rupee (ISO Code INR) is the currency of the Republic of India. The word "rupee" was derived from the Sanskrit word raupya, meaning "silver". The Reserve Bank manages currency in India on the basis of the Reserve Bank of India Act, 1934.
Indian rupee is subdivided into 100 paise. Coin denominations of less than 50 paise are not a legal tender. Rupee coins are available in denominations of 50 paise and 1, 2, 5, 10, 100 and 1000 rupees (100 and 1000 coins are commemorative. Valid banknotes are in nominal values of 5, 10, 20, 50, 100 Mahatma Gandhi series and 500, 2000 Mahatma Gandhi New Series. Obverse of each note features a portrait of Mahatma Gandhi. The zero rupee note is not an official government issue, but a symbol of protest, it is printed (and distributed) by an NGO in India. Currency notes are printed at the Currency Note Press in Nashik, the Bank Note Press in Dewas, the Bharatiya Note Mudra Nigam (P) presses at Salboni and Mysore and at the Watermark Paper Manufacturing Mill in Hoshangabad.
The Indian rupee symbol (officially adopted in 2010) is derived from the Devanagari consonant (Ra) with an added horizontal bar. The symbol can also be derived from the Latin consonant "R" by removing the vertical line, and adding two horizontal bars (like the symbols for the Japanese yen and the euro). The first series of coins with the rupee symbol was launched on 8 July 2011.
The demonetisation of ₹500 and ₹1,000 banknotes was a policy enacted by the Government of India on 8 November 2016, ceasing the usage of all ₹500 and ₹1,000 banknotes of the Mahatma Gandhi Series as legal tender in India from 9 November 2016.
The Indian numeral system is based on the decimal system, with two notable differences from Western systems using long and short scales. The system is ingrained in everyday monetary transactions in the Indian subcontinent.
Officially, the Indian rupee has a market-determined exchange rate. However, the RBI trades actively in the USD/INR currency market to impact effective exchange rates. Thus, the currency regime in place for the Indian rupee with respect to the US dollar is a de facto controlled exchange rate. This is sometimes called a "managed float". Other rates (such as the EUR/INR and INR/JPY) have the volatility typical of floating exchange rates. Unlike China, successive administrations (through RBI, the central bank) have not followed a policy of pegging the INR to a specific foreign currency at a particular exchange rate. RBI intervention in currency markets is solely to ensure low volatility in exchange rates, and not to influence the rate (or direction) of the Indian rupee in relation to other currencies.
Also affecting convertibility is a series of customs regulations restricting the import and export of rupees. Legally, foreign nationals are forbidden from importing or exporting rupees; Indian nationals can import and export only up to 7,500 rupees at a time.
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