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Indian rupee

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The Indian rupee is the official currency of India. It is also identified by the symbol ₹ and the code INR. This currency is used for all daily trade and economic activities in the country. The Reserve Bank of India controls how the currency is issued. The bank gets its power from the Reserve Bank of India Act of 1934. One rupee is divided into 100 smaller units called paise.

Indian Paisa symbol
Indian Paisa symbol

As of April 2025, the rupee is the eleventh-most-traded currency globally.

The history of the rupee began in ancient India. Ancient India was among the first places in the world to issue coins. This happened alongside the Chinese wen and the Lydian staters. Around the 6th to 4th century BCE, a grammarian named Pāṇini wrote about metal pieces. He used terms like rūpa and rūpya. Scholars believe these words referred to precious metal or stamped coins.

MauryanCoin
MauryanCoin

Later, Chanakya wrote the Arthashastra. He was the prime minister to the Mauryan emperor Chandragupta Maurya. Chanakya mentioned several types of coins in his writing. These included silver rūpyarūpa, gold suvarṇarūpa, copper tamrarūpa, and lead sīsarūpa.

Different empires shaped the coins used in India over many centuries. The Gupta Empire under Chandragupta II produced many silver coins. These coins were called Rūpaka in Sanskrit. They weighed about 20 rattis, which is roughly 2.2678 grams.

Gupta Kings. Skandagupta. AD 455-467
Gupta Kings. Skandagupta. AD 455-467

After the Guptas, there was a time without a fixed monetary system. Later, Sultan Sher Shah Suri changed things during his rule from 1540 to 1545. He issued a silver coin called the rupiya. This coin weighed 178 grains, or about 11.53 grams. This specific weight remained standard through the Mughal Empire and the Maratha era. It even lasted into the 20th century.

In the 1800s, the rupee faced significant economic shifts. For a long time, the rupee was a silver coin. At that time, many strong economies used a gold standard. A gold standard means paper money is linked to the value of gold. In the late 1800s, large amounts of silver were found in the United States. This caused the value of silver to drop compared to gold. This event was called "the fall of the rupee."

INDIAN SILVER RUPEE VALUE 1850-1900
INDIAN SILVER RUPEE VALUE 1850-1900

This decline contributed to a period called the Long Depression. This depression lasted until 1897 and caused many economic struggles.

The British government also influenced the currency during their rule. In 1835, British India adopted a mono-metallic silver standard. This meant the system relied mostly on silver coins. After the Sepoy Rebellion in 1857, the British government took direct control of India. They tried to introduce British gold sovereigns to the region. However, these gold coins often stayed in vaults in Bombay and Calcutta. The British eventually realized they could not easily replace the silver rupee with the pound sterling.

India 1835 2 Mohurs
India 1835 2 Mohurs

To fix the currency issues, the Fowler Committee was formed in 1898. This was also known as the Indian Currency Committee. The committee spent over a year examining the situation. They listened to 49 different witnesses to understand the problems. The committee recommended that India move toward a gold standard. They suggested that mints should only make gold coins.

Government of India 5 Rupee Note 1858
Government of India 5 Rupee Note 1858

By 1901, the system was described as a "limping" gold standard. This was similar to the systems used in France and the United States. The goal was to make the currency more stable for international trade.

World War II brought more changes to the currency. In parts of Nagaland, Japanese forces took control from the British. During this time, the British Indian rupee was banned. The Japanese replaced it with the Japanese rupee between 1942 and 1944.

IND-1c-Government of India-1 Rupee (1917)
IND-1c-Government of India-1 Rupee (1917)

The value of silver also caused tension in 1917. The British government had to raise the value of the silver rupee against gold. They did this to prevent economic crises during the war. Today, the rupee remains a vital part of India's identity and its connection to the global financial system.

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🖼️ Images & Media (45)
File:Indian Paisa symbol.svg
Indian Paisa symbol.svg
File:Indian_Paisa_symbol.svg
Indian_Paisa_symbol.svg
File:MauryanCoin.JPG
MauryanCoin.JPG
File:Gupta Kings. Skandagupta. AD 455-467.jpg
Gupta Kings. Skandagupta. AD 455-467.jpg
File:Sher shah's rupee.jpg
Sher shah's rupee.jpg
File:INDIAN SILVER RUPEE VALUE 1850-1900.png
INDIAN SILVER RUPEE VALUE 1850-1900.png
File:Government_of_India_5_Rupee_Note_1858.jpg
Government_of_India_5_Rupee_Note_1858.jpg
File:IND-1c-Government of India-1 Rupee (1917).jpg
IND-1c-Government of India-1 Rupee (1917).jpg
File:IN Aluminium Series Paise.jpg
IN Aluminium Series Paise.jpg
File:BOMBAY MINT Post Card.jpg
BOMBAY MINT Post Card.jpg
File:India 1835 2 Mohurs.jpg
India 1835 2 Mohurs.jpg
File:Rupee, 1840 - British India, Victoria.jpg
Rupee, 1840 - British India, Victoria.jpg

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