Indian Rupee (INR)

The Indian Rupee (INR) is the official currency of India, represented by the symbol "₹". It is issued and managed by the Reserve Bank of India (RBI), the country's central bank. The name "rupee" is derived from the Sanskrit word "rupya," which means "silver" or "wrought silver." The Indian Rupee is further divided into smaller units called "paise," with 100 paise equalling one rupee.

The Indian currency system has a long history, with various forms of currency used throughout the centuries. The modern Indian Rupee was introduced in the 19th century when the British East India Company standardized the currency system in India. Initially, the Indian Rupee was pegged to the British Pound, but after India gained independence in 1947, the Indian Rupee was devalued and pegged to the U.S. Dollar under the Bretton Woods system. In 1971, the Bretton Woods system was abandoned, and the Indian Rupee transitioned to a managed float exchange rate system.

Indian Rupee banknotes come in various denominations, including ₹1, ₹2, ₹5, ₹10, ₹20, ₹50, ₹100, ₹200, ₹500, and ₹2000. Coins are also issued in denominations of ₹1, ₹2, ₹5, and ₹10, as well as smaller denominations in paise (50 paise being the highest available). In recent years, India has introduced new banknotes and phased out old ones in an effort to combat counterfeiting and black money.

India's currency management is primarily the responsibility of the Reserve Bank of India (RBI). The RBI is in charge of issuing currency, managing its circulation, ensuring its stability and value, and maintaining an adequate supply of coins and banknotes to meet public demand. The RBI also combats counterfeiting and takes measures to maintain the integrity and security of the Indian Rupee.

The exchange rate of the Indian Rupee is determined by market forces, including interest rates, inflation, economic growth, and geopolitical factors. As a developing economy, India's exchange rate is influenced by factors such as foreign direct investment, portfolio investments, trade balances, and the country's overall economic and political stability.