Indian Rupee Essay

INR redirects here. For other customs, render INR (disambiguation). For the Malayalam film, see Indian Rupee (film).Indian rupee (Hindi)ISO 4217 jurisprudence INRCentral bank conquer fix of IndiaWebsite www.rbi.org.inOfficial user(s) IndiaUn authoritative user(s) Bhutan (alongside theBhutanese ngultrum) Nepal (alongside theNepalese rupee)Inflation 5.96%, March 2013Source Economic AdviserMethod WPIPegged by Bhutanese ngultrum (at par)Nepalese rupee (1 INR = 1.6 NPR)Subunit 1/ light speed PaisaSymbol Paisa pFormerly used symbols and Coins , Rs, , , , , , . knight Taka(), Rupayya, Rupai, Rupees, Rupay, Rupayee Coins 50 paise, 1, 2, 5, 10 vernacular nones 5, 10, 20, 50, vitamin C, ergocalciferol, molarity Printer diffidence bound of IndiaWebsite www.rbi.org.inMint India Government MintWebsite www.spmcil.comThe Indian rupee (sign code INR) is the official money of the Republic of India. The issuance of the currency is controlled by the apply cashbox of India.1 The modern r upee is subdivided into 100 paise (singular paisa), though as of 2011 only 50-paise expunges ar judicial tender.23 Bank strains in circulation put in in denominations of 5, 10, 20, 50, 100, vitamin D and 1000. Rupee coins ar avail adapted in denominations of 1, 2, 5, 10, 100 and 1000 of these, the 100 and 1000 coins befor commemorative purposes only the only other rupee coin has a nominal pry of 50 paise, since lower denominations have been offici on the wholey withdrawn. The Indian rupee symbol (officially espouse in 2010) is derived from the Devanagari harmonised (Ra) and the Latin garner R. The startle serial publication of coins with the rupee symbol was launched on 8 July 2011. The guard Bank manages currency in India and derives its role in currency management on the basis of the Reserve Bank of India Act, 1934. Recently RBI launched a website Paisa-Bolta-Hai to raise awareness of counterfeit currency among users of the INR. Contentshide* 1 Etymology* 2 Design* 3 Numeral system* 4 History* 4.1 Indias* 4.2 psyche Settlements* 4.3 International use* 5 Coins* 5.1 easterly India Company, 1835* 5.2 Regal publishs, 18621947* 5.3 mugwump predecimal issues, 19501957* 5.4 Independent decimal issues, 1957* 5.5 Special coins* 6 Banknotes* 6.1 British India* 6.2 Independent issues since 1949* 6.3 Current tones* 7 Languages* 8 Minting* 9 Security features* 10 Convertibility* 10.1 Chronology* 11 Exchange rates* 11.1 historic transform rates* 11.2 Banknotes and coins in circulation* 11.3 Current reciprocation rates* 12 See as well as* 13 References* 14 External links-Etymologyedit spring editbetaThe volume rupee was derived from the Sanskrit word raupyak, meaning money-tongued. This is like to the British Pound-Sterling, in which the term sterling office silver. 1. (rupiyo) in Gujarati2. (tka) in As alike(p)se3. (taka) in Bengali4. (rupay) in Hindi5. (pronounced ropyih) in Kashmiri6. (rpyi) in Kannada, Tulu and Konkani 7. (rupay) in Konkani8. (rp) in Malayalam9. (rupay) in Marathi10. (rupiya) in Nepali11. (tanka) in Oriya12. (rupi) in Punjabi13. (rpyakam) in Sanskrit (Devnagari) 14. (rupiyo) in Sindhi15. (rpi) in Tamil16. (rpyi) in Telugu17. (rupay) in UrduHowever, in the Assam, West Bengal, Tripura and Odisha the Indian rupee is officially known by names derived from the word (ak), which means specious.4 Thus, the rupee is called (k) in Assamese, (k) in Bengali and (ak) in Oriya. The fall (and the word rupee) is, accordingly, written on the front of Indian banknotes in English and Hindi, whilst on the back the name is listed, in English alphabetical order,5 in 15 other Indian languages6 -Designedit witness editbetaThe bleak sign () is a combination of the Devanagari earn (ra) and the Latin crown letter R without its vertical bar (similar to the R rotunda). The parallel lines at the natural covering (with white space between them) are said to make an allusion to the tricolour Indian fla g.7 and also show up an equality sign that symbolises the nations desire to slenderize economic dis paratrooper. It was designed at theNational form of Design -Numeral systemedit source editbetaMain article Indian numbering systemThe Indian figure system is based on the decimal system, with two notable differences from Western systems using long and curt scales. The system is ingrained in everyday monetary transactions in the Indian subcontinent. Indian semantic International semantic Indian comma placement International comma placement 1 hundred thousand 100 thousand 1,00,000 100,00010 lakhs 1 million 10,00,000 1,000,0001 crore 10 million 1,00,00,000 10,000,00010 crores 100 million 10,00,00,000 100,000,0001 Arab 1 cardinal 1,00,00,00,000 1,000,000,00010 Arabs 10 billion 10,00,00,00,000 10,000,000,0001 kharab 100 billion 1,00,00,00,00,000 100,000,000,000 10 kharabs 1 trillion 10,00,00,00,00,000 1,000,000,000,000 1 padam(shankh) 10 trillion 1,00,00,00,00,00,000 10,000,000,000, 000 10 padams(shankhs) 100 trillion 10,00,00,00,00,00,000 100,000,000,000,000 * discover that in practice, use of Arab, kharab, padam is rare. In modern usage, 1 Arab would be 100 crores. For example, the amount 3,25,84,729.25 is read as trinity crore, twenty-five lakh, eighty-four thousand, seven hundred twenty-nine rupees and twenty-five paise. The use of millions (or billions, trillions, etc.) in the Indian subcontinent is very rare. -Historyedit source editbetaMain article History of the rupeeIndiasedit source editbetaSilver punch clams coin of the Maurya empire, known as Rupyarupa, 3rd century BCE. Historically, the rupee (derived from the Sanskrit word raupya), was a silver coin. This had revolting consequences in the nineteenth century, when the strongest economies in the world were on the gold standard. The discovery of large quantities of silver in the United States and several European colonies resulted in a decline in the value of silver copulation to gold, devalui ng Indias standard currency. This event was known as the fall of the rupee. The history of the Indian rupee traces back to Ancient India in circa 6th century BC, ancient India was one of the earliest issuers of coins in the world,8along with the Chinese wen and Lydian staters. The Hindi word rpiya is derived form Sanskrit word rpya, which means wrought silver, a coin of silver,9 in origin an adjective meaning shapely, with a more proper(postnominal) meaning of stamped, impressed, whence coin. It is derived from the noun rpa shape, likeness, insure. The word rpa is universe further identified as having sprung from the Dravidian . Arthashastra, written by Chanakya, prime minister to the first Maurya emperor moth C pass onragupta Maurya(c. 340-290 BCE), mentions silver coins asrupyarupa, other types of coins including gold coins (Suvarnarupa), copper coins ( Tamararupa) and lead coins (Sisarupa) are also mentioned. Rupa means form or shape, example, Rupyarupa, Rupya wrought silver, rupa form.10 During his five- social class rule from 1540 to 1545, he set up a mod civic and military administration, sheepskin coat king Sher Shah Suri issued a coin of silver, weighing 178 grains, which was termed theRupiya.911 The silver coin remained in use during the Mughal period, Maratha era as well as in British India.12 Among the earliest issues of paper rupees include the Bank of Hindustan (17701832), the General Bank of Bengal and Bihar (177375, established by Warren Hastings), and the Bengal Bank (178491).Rupiya issued by Sher Shah Suri, 15401545 CEIndia was unaffected by the imperial order-in-council of 1825, which try to introduce British sterling coinage to the British colonies. British India, at that time, was controlled by the British EastIndia Company. The silver rupee continued as the currency of India through the British Raj and beyond. In 1835, British India adopted a mono-metallic silver standard based on the rupee this decision was square offd by a letter written by Lord Liverpool in 1805 extolling the virtues of mono-metallism. Following the Indian Mutiny in 1857, the British governing took direct control of British India. Since 1851, gold sovereigns were produced en masse at the Royal Mint in Sydney, New South Wales. In an 1864 attempt to make the British gold sovereign the imperial coin, the treasuries in Bombay andCalcutta were instructed to receive gold sovereigns however, these gold sovereigns never left the vaults. As the British disposal gave up hope of replacing the rupee in India with the pound sterling, it realized for the same reason it could not regenerate the silver clam in the Straits Settlements with the Indian rupee (as the British East India Company had desired).Since the silver crisis of 1873, a number of nations adopted the gold standard however, India remained on the silver standard until it was replaced by a basket of commodities and currencies in the late 20th century.citation needed The Indian rupee replac ed the Danish Indian rupee in 1845, the French Indian rupee in 1954 and the Portuguese Indian escudo in 1961. Following the liberty of British India in 1947 and theaccession of the princely states to the new Union, the Indian rupee replaced all the currencies of the previously autonomous states (although the Hyderabadi rupee was not demonetised until 1959).13 Some of the states had issued rupees equal to those issued by the British (such as the Travancore rupee). Other currencies (including the Hyderabadi rupee and the Kutch kori) had diametrical values.One-rupee banknoteObverse of a one-rupee note issued by the Government of India. The values of the subdivisions of the rupee during British rule (and in the first decade of independence) were * 1 rupee = 16 anna (later 100 naye paise)* 1 artharupee = 8 anna, or 1/2 rupee (later 50 naye paise) * 1 pavala = 4 anna, or 1/4 rupee (later 25 naye paise)* 1 beda = 2 anna, or 1/8 rupee (later equivalent to 12.5 naye paise) *1 anna = 1/16 r upee (later equivalent to 6.25 naye paise) * 1 paraka = 1/2 anna (later equivalent to 3.125 naye paise) * 1 kani (pice) = 1/4 anna (later equivalent to 1.5625 naye paise) * 1 damidi (pie) = 1/12 anna (later equivalent to 0.520833 naye paise) In 1957, the rupee was decimalised and divided into 100 naye paise (Hindi for new paise) in 1964, the initial naye was dropped. Many still refer to 25, 50 and 75 paise as 4, 8 and 12 annas respectively, similar to the usage of two bits in American English for a quarter-dollar. Straits Settlementsedit source editbetaThe Straits Settlements were originally an outlier of the British East India Company. The Spanish dollar had already taken hold in the Settlements by the time the British arrived during the 19th century however, the East India Company tried to replace it with the rupee. This attempt was resisted by the locals by 1867 (when the British authorities took over direct control of the Straits Settlements from the East India Company), attem pts to introduce the rupee were finally abandoned. International useedit source editbetaSee also Pakistani rupeeWith the Partition the Pakistani rupee came into existence, initially using Indian coins and Indian currency notes simply overstamped with Pakistan. Previously the Indian rupee was an official currency of other countries, including Aden, Oman, Dubai, Kuwait, Bahrain, Qatar, the Trucial States, Kenya, Tanganyika, Uganda, the Seychelles and Mauritius. The Indian government introduced the Gulf rupee also known as the Iranian Gulf rupee (XPGR) as a replacement for the Indian rupee for circulation outside the country with the Reserve Bank of India (Amendment) Act of 1 May 1959. The creation of a separate currency was an attempt to reduce the strain on Indias foreign reserves from gold smuggling.After India devalued the rupee on 6 June 1966, those countries still using it Oman, Qatar, and the Trucial States (which became the United Arab Emirates in 1971) replaced the Gulf r upee with their own currencies. Kuwait and Bahrain had already done so in 1961 and 1965, respectively. The Bhutanese ngultrum is pegged at par with the Indian rupee both currencies are accepted in Bhutan. The Nepalese rupee is pegged at 0.625 the Indian rupee is accepted inNepal, demur vitamin D and 1000 banknotes, which are not legal tender in Nepal. Sri Lankas rupee is not currently related to that of India it is pegged to the US dollar.14 -Coinsedit source editbetaMain article Modern Indian coinsEast India Company, 1835edit source editbetaThe three Presidencies established by the British East India Company (Bengal, Bombay and Madras) each issued their own coinages until 1835. All three issued rupees and fractions thereof down to 18- and 116-rupee in silver. Madras also issued two-rupee coins. Copper denominations were more varied. Bengal issued one-pie, 12-, one- and two-paise coins. Bombay issued 1-pie, 14-, 12-, 1-, 112-, 2- and 4-paise coins. In Madras there were copper co ins for two and four pies and one, two and four paisa, with the first two denominated as 12 and one dub (or 196 and 148) rupee. Madras also issued the Madras fanam until 1815. All three Presidencies issued gold mohurs and fractions of mohurs including 116, 12, 14 in Bengal, 115 (a gold rupee) and 13 (pancia) in Bombay and 14, 13 and 12 in Madras. In 1835, a single coinage for the EIC was introduced. It consisted of copper 112, 14 and 12 anna, silver 14, 13 and 1 rupee and gold 1 and 2 mohurs. In 1841, silver 2 annas were added, followed by copper 12 pice in 1853. The coinage of the EIC continued to be issued until 1862, even after the Company had been taken over by the Crown. Regal issues, 18621947edit source editbetaRegal issue minted during the reign ofKing/Emperor George V. In 1862, coins were introduced (known as regal issues) which bore the personation of Queen Victoria and the date India. Their denominations were112 anna, 12 pice, 14 and 12 anna (all in copper), 2 annas, 14 , 12 and one rupee (silver), and five and ten rupees and one mohur (gold). The gold denominations ceased production in 1891, and no 12-anna coins were issued after 1877. In 1906, bronze replaced copper for the lowest three denominations in 1907, a cupro- plate one-anna coin was introduced. In 19181919 cupro-nickel two-, four- and eight-annas wereintroduced, although the four- and eight-annas coins were only issued until 1921 and did not replace their silver equivalents. In 1918, the Bombay mint also laid low(p) gold sovereigns and 15-rupee coins identical in size to the sovereigns as an emergency measure during to the First World War. In the early 1940s, several changes were implemented. The 112 anna and 12 pice ceased production, the 14 anna was changed to a bronze, holed coin, cupro-nickel and nickel-brass 12-anna coins were introduced, nickel-brass was used to produce some one- and two-annas coins, and the silver composition was reduced from 91.7 to 50 percent. The last of the r egal issues were cupro-nickel 14-, 12- and one-rupee pieces minted in 1946 and 1947, bearing the image of George VI, King and Emperor on the obverse and an Indian tiger on the reverse.. Independent predecimal issues, 19501957edit source editbetaIndian one pice, minted in 1950Indias first coins after independence were issued in 1950 in 1 pice, 12, one and two annas, 14, 12 and one-rupee denominations. The sizes and composition were the same as the final regal issues, except for the one-pice (which was bronze, scarcely not holed). Independent decimal issues, 1957edit source editbetaIn 1964, India introduced aluminium coins for denominations up to 20p. The first decimal-coin issues in India consisted of 1, 2, 5, 10, 25 and 50 naye paise, and 1 rupee. The 1 naya paisa was bronze the 2, 5 & 10 naye paise were cupro-nickel, and the 25 naye paise (nicknamed chavanni 25 naye paise equals 4 annas), 50 naye paise (also called athanni 50 naye paise equaled 8 old annas) and 1-rupee coins wer e nickel. In 1964, the word naya(e) was removed from all coins. Between 1964 and 1967, aluminum one-, two-, three-, five- and ten-paise coins were introduced. In 1968 nickel-brass 20-paise coins were introduced, and replaced by aluminum coins in 1982. Between 1972 and 1975, cupro-nickel replaced nickel in the 25- and 50-paise and the 1-rupee coins in 1982, cupro-nickel two-rupee coins were introduced. In 1988 unmarred steel 10-, 25- and 50-paise coins were introduced, followed by 1- and 5-rupee coins in 1992. Five-rupee coins, made frombrass, are being minted by the Reserve Bank of India (RBI). Between 2005and 2008 new, lighter fifty-paise, one-, two- and five-rupee coins were introduced, made from ferritic stainless steel. The move was prompted by the melting-down of aged coins, whose face value was less than their scrap value. The demonetization of the 25-(chavanni)paise coin and all paise coins below it took place, and a new serial publication of coins (50 paise nicknamed athan ni one, two, five and ten rupees, with the new rupee symbol) were put into circulation in 2011. Coins commonly in circulation are one, two, five and ten rupees.1516 Although it is still legal tender, the 50-paise (athanni) coin is rarely seen in circulation.17 Circulating Coins 1518 pass judgment practiced parameters Description Year of Diameter Mass Composition Shape Obverse Reverse First minting Last minting 50 paise 19 mm 3.79 g Ferritic stainless steel notice figure of India Value, the word PAISE in English and Hindi, flowered motif and form of minting 2011 50 paise 22 mm 3.79 g Ferritic stainless steel Circular Emblem of India Value, hand in a fist 2008 1 25 mm 4.85 g Ferritic stainless steel Circular Emblem of India, value Value, two stalks of wheat 1992 1 25 mm 4.85 g Ferritic stainless steel Circular Emblem of India Value, hand showing thumb (an expression in the Bharata Natyam Dance) 2007 1 22 mm 3.79 g Ferritic stainless steel Circular Emblem of India Value, new rupee sign, floral motif and division of minting 2011 2 26 mm 6 g Cupro-Nickel Eleven Sided Emblem of India, Value National integration 1982 2 27 mm 5.62 g Ferritic stainless steel Circular Emblem of India, year of minting Value, hand showing two fingers (Hasta Mudra hand gesture from the dance Bharata Natyam) 2007 2 25 mm 4.85 g Ferritic stainless steel Circular Emblem of India Value, new rupee sign, floral motif and year of minting 2011 5 23 mm 9 g Cupro-Nickel Circular Emblem of India Value 1992 5 23 mm 6 g Ferritic stainless steel Circular Emblem of India Value, wavy lines 2007 5 23 mm 6 g Brass Circular Emblem of India Value, wavy lines 2009 5 23 mm 6 g Nickel- Brass Circular Emblem of India Value, new rupee sign, floral motif and year of minting 2011 1027 mm 5.62 g Bimetallic Circular Emblem of India with value Value, wavy lines 2006 10 27 mm 5.62 g Bimetallic Circular Emblem of India and year of minting Value with outward give out pattern, new rupee sign 2011 The coins are minted at the four locations of the India Government Mint. The 1, 2, and 5 coins have been minted since independence. Coins minted with the hand picture were minted from 2005 onwards. Special coinsedit source editbetaAfter independence, the Government of India mint, minted coins imprinted with Indian statesmen, historical and religious figures. In year 2010 for the first time ever 75, 150 and 1000 coins were minted in India to commemorate Reserve Bank of Indias Platinum jubilee, 150th birth anniversary of Rabindra Nath Tagore and 1000 years of Brihadeeswarar Temple, respectively. -Banknotesedit source editbetaThe design of banknotes is approved by the central government, on the recommendation of the central board of the Reserve Bank of India.1 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 curr ent series of banknotes (which began in 1996) is known as the Mahatma Gandhi series. Banknotes are issued in the denominations of 5, 10, 20, 50, 100, 500 and 1000. The opinion of 5 notes (which had stopped earlier) resumed in 2009. ATMs usually distribute 100, 500 and 1,000 notes. The zero rupee note is not an official government issue, but a symbol of quetch it is printed (and distributed) by an NGO in India. British Indiaedit source editbetaBritish Indian ten rupee noteBritish Indian one rupee noteIn 1861, the government of India introduced its first paper money 10 notes in 1864, 5 notes in 1872, 10,000 notes in 1899, 100 notes in 1900, 50-rupee notes in 1905, 500-rupee notes in 1907 and 1000-rupee notes in1909. In 1917, 1- and 212-rupee notes were introduced. The Reserve Bank of India began banknote production in 1938, issuing 2, 5, 10, 50, 100, 1,000 and 10,000 notes while the government continued issuing 1 notes. Independent issues since 1949edit source editbetaAfter indepe ndence, new designs were introduced to replace the portrait of the king. The government continued issuing the 1note, while the Reserve Bank issued other denominations (including the 5,000 and 10,000 notes introduced in 1949). During the 1970s, 20 and 50 notes were introduced denominations high than 100 were demonetised in 1978. In 1987 the 500-rupee note was introduced, followed by the 1,000 note in 2000. 1 and 2 notes were give up in 1995. In September 2009, the Reserve Bank of India decided to introduce polymer banknotes on a political campaign basis. Initially, 100 crore (1 billion) pieces of polymer 10 notes provide be introduced.19 According to Reserve Bank officials, the polymer notes will have an average lifespan of five years (four times that of paper banknotes) and will be difficult to counterfeit they will also be cleaner than paper notes. Current banknotesedit source editbetaMain article Mahatma Gandhi Series (banknotes)Mahatma Gandhi series 1000 banknote with the po rtrait of Mahatma Gandhi The Mahatma Gandhi series of banknotes are issued by the Reserve Bank of India as legal tender. The series is so named because the obverse of each note features a portrait of Mahatma Gandhi. Since its introduction in 1996, this series has replaced all issued banknotes. The RBI introduced the series in 1996 with 10 and 500 banknotes. At present, the RBI issues banknotes in denominations from 5 to 1,000. The printing of 5 notes (which had stopped earlier) resumed in 2009. As of January 2012, the new sign has been incorporated into banknotes in denominations of 10, 20, 50, 100, 500 and 1,000.20212223 -Languagesedit source editbetaEach banknote has its amount written in 17 languages. On the obverse, the denomination is written in English and Hindi. On the reverse is a language circuit card which displays the denomination of the note in 15 of the 22 official languages of India. The languages are displayed in alphabetical order. Languages included on the panel a re Assamese, Bengali, Gujarati, Kannada, Kashmiri, Konkani, Malayalam, Marathi, Nepali, Oriya, Punjabi, Sanskrit,Tamil, Telugu and Urdu. Denominations in confused languagesLanguage 1 2 5 10 20 50 100 500 1000 English One rupee Two rupees Five rupees Ten rupees Twenty rupees Fifty rupees cytosine rupees Five hundred rupees One thousand rupees Assamese Bengali Gujarati Hindi Nepali Kannada Konkani Malayalam Marathi Sanskrit Kashmiri -Tamil Telugu Punjabi Urdu Oriya 0 -Mintingedit source editbetaA postcard depicting the Mint.The Government of India has the only right to mint the coins. The office for coinage comes under the Coinage Act, 1906 which is amended from time to time. The designing and minting of coins in various denominations is also the province of the Government of India. Coins are minted at the five India Government Mints at Mumbai, Alipore(Kolkata), Saifabad(Hyderabad), Cherlapally (Hyderabad) and NOIDA (UP).24 The coins are issued for circulation only through the Reserve Bank in terms of the RBI Act. -Security featuresedit source editbetaThe main credentials features of current banknotes are* Watermark White side panel of notes has Mahatma Gandhi watermark. * Security thread All notes have a silver or green security band with inscriptions (visible when held against light) of Bharat in Hindi and RBI in English. * Latent image On notes of denominations of 20 and upwards, a vertical band on the right side of the Mahatma Gandhis portrait contains a latent image showing the respective denominational value numerally (visible only when the note is held horizontally at eye level). * Microlettering Numeral denominational value is visible under magnifying glass between security thread and latent image. * Intaglio On notes with denominations of 5 and upwards the portrait of Mahatma Gandhi, the Reserve Bank seal, fix and promise clause, Ashoka Pillar Emblem on the left and the RBI Governors signature are printed in intaglio (raised print). * Identification mark On the left of the watermark window,different shapes are printed for various denominations 20 vertical rectangle, 50 square, 100 triangle, 500 circle, 1,000 diamond). This also helps the visually impaired to identify the denomination. * Fluorescence flake panels glow under ultraviolet light. * Optically variable ink Notes of 500 and 1,000 denominations have their numerals printed in optically variable ink. The number appears green when the note is held flat, but changes to blue when viewed at an angle. * See-through register patterned designs printed on the front and the back of the note coincide and perfectly overlap each other when viewed against light. * EURion form A pa ttern of symbols found on the banknote helps software detect the presence of a banknote in a digital image, preventing its reproduction with devices such as colour photocopiers. -Convertibilityedit source editbetaMost traded currencies by valueCurrency distribution of global foreign exchange market turnover2526 Rank Currency ISO 4217 code(Symbol) % daily share(April 2010)1 United States dollar USD ($) 84.9%2 Euro EUR () 39.1%3 Japanese yen JPY () 19.0%4 Pound sterling GBP () 12.9%5 Australian dollar AUD ($) 7.6%6 Swiss franc CHF (Fr) 6.4%7 Canadian dollar domestic dog ($) 5.3%8 Hong Kong dollar HKD ($) 2.4%9 Swedish krona SEK (kr) 2.2%10 New Zealand dollar NZD ($) 1.6%11 Singapore dollar SGD ($) 1.5%12 South Korean won KRW () 1.5%13 Norwegian krone NOK (kr) 1.3%14 Mexican peso MXN ($) 1.3%15 Indian rupee INR () 0.9%Other 12.2%Total27 200%Officially, the Indian rupee has a market-determined exchange rate. However, the RBI trades actively in the USD/INR currency market to impact eff ective exchange rates. Thus, the currency regime in place for the Indian rupee with respect to the US dollaris 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, and often create persistant arbitrage opportunities against the RBI.28 Unlike China, successive administrations (through RBI, the central bank) have not followed a insurance of pegging the INR to a specific foreign currency at a particular exchange rate.RBI disturbance 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.29 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 at a time, and th e possession of 500 and 1,000 rupee notes in Nepal is prohibited 3031 RBI also exercises a system of metropolis controls in appurtenance to intervention (through active trading) in currency markets. On the current account, there are no currency-conversion restrictions hindering buying or selling foreign exchange (although trade barriers exist). On the capital account, foreign institutional investors have convertibility to bring money into and out of the country and buy securities (subject to quantitative restrictions). Local firms are able to take capital out of the country in order to expand globally. However, local households are restricted in their ability to diversify globally. Because of the expansion of the current and capital accounts, India is increasingly moving towards full de facto convertibility. on that point is some confusion regarding the interchange of the currency with gold, but the system that India follows is that money cannot be exchanged for gold under any c ircumstances due to golds lack of liquiditycitation needed therefore, money cannot be changed into gold by the RBI. India follows the same principle as Great Britain and the U.S. Reserve Bank of India clarifies its position regarding the promissory clause printed on each banknote As per Section 26 ofReserve Bank of India Act, 1934, the Bank is liable to pay the value of banknote. This is payable on demand by RBI, being the issuer. The Banks indebtedness to pay the value of banknote does not arise out of a contract but out of statutory provisions.The promissory clause printed on the banknotes i.e., I promise to pay the bearer an amount of X is a statement which means that the banknote is a legal tender for X amount. The obligation on the part of the Bank is to exchange a banknote for coins of an equivalent amount. 32 Chronologyedit source editbeta* 1991 India began to lift restrictions on its currency. A number of reforms remove restrictions on current account transactions (includ ing trade, interest payments and remittances and some capital asset-based transactions). Liberalised Exchange Rate Management System (LERMS) (a dual-exchange-rate system) introduced partial convertibility of the rupee in March 1992.33 * 1997 A panel (set up to explore capital account convertibility) recommended that India move towards full convertibility by 2000, but the timetable was abandoned in the wake of the 19971998East Asian financial crisis. * 2006 Prime Minister Manmohan Singh asked the Finance Minister and the Reserve Bank of India to spend a penny a road map for moving towards capital account convertibility.34 -Exchange ratesedit source editbetaHistoric exchange ratesedit source editbetaGraph of exchange rates of Indian rupee (INR) per 1 USD, 1 GBP, 1 EUR, 100 JPY averaged over the month, from September 1998 to May 2013. Data source Reserve Bank of India reference rate For to the highest degree a century since the Great Recoinage of 1816 until the outbreak of World War I, the Indian Rupee sustained parity with the US Dollar while pegged to the Pound Sterling that was exchanged at 4.80 (or 50 old pence per Rupee). Thereafter, both the Rupee and the Sterling gradually declined in worth against the US Dollar due to deficits in trade, capital and budget. In 1966, the Rupee was devalued and pegged to the US Dollar. The peg to the pound was at INR 13.33 to a Pound which itself was pegged to USD 4.03. That means officially speakingthe USD to INR rate would be closer to Rs 4. In 1966, India changed the peg to dollar at INR 7.50.35 Indian rupees per currency unit averaged over the year36 Currency code 1996 2000 2004 2006 2007 2008 2009 2010 2013 U.S. dollar USD 35.444 44.2 45.340 43.954 39.5 48.76112 45.3354 58 68.80 Canadian dollar CAD 26.002 30.283 34.914 41.098 42.92026 44.5915 52.1706 Euro* EUR 44.401 41.525 56.385 64.127 68.03312 60.5973 65.6987 Pound sterling GBP 55.389 68.119 83.064 80.633 76.38023 71.3313 83.6329 Swiss franc CHF 28 50Singapore dollar SGD 25.160 26.07 26.830 30.932 33.60388 34.5127 41.2737 *before 1 Jan 1999, European Currency Unit,Banknotes and coins in circulationedit source editbeta As of 2012 banknotes of the denominations of 5, 10, 20, 50, 100, 500 and 1000 are in circulation coins with face-value of 50 paisa, 1, 2, 5 and 10 rupees. This is excluding the commemorative coins minted for special occasions.