Indian rupee facts for kids

Quick facts for kids Indian rupee
Banknotes of the Indian Rupee Coins of the Indian rupee
ISO 4217 Code	INR
Official user(s)	India  Bhutan (alongside Bhutanese ngultrum)
Unofficial user(s)	Zimbabwe (hasn't been used since 2019)  Nepal
Inflation	5.08% (June 2024)
Source	RBI – Annual Inflation Report
Method	Consumer price index (India)
Pegged by	Bhutanese ngultrum (at par) Nepalese rupee (higher value) [1₹=1.6 Nepalese Rupee]
Subunit
1⁄100	paisa
Symbol	₹
paisa
Coins
Freq. used	₹1, ₹2, ₹5, ₹10, ₹20
Rarely used	50
Banknotes
Freq. used	₹10, ₹20, ₹50, ₹100, ₹200, ₹500
Rarely used	₹1, ₹2 , ₹5
Printer	Security Printing and Minting Corporation of India Limited

The Indian rupee (symbol: ₹; code: INR) is the official money used in India. The rupee is divided into 100 smaller units called paise. The Reserve Bank of India is in charge of printing and managing all the money in India. They follow rules set by the Reserve Bank of India Act, 1934.

What's in a Name? The Rupee's Story

The word rupee comes from an old Sanskrit word, rūpya. This word meant a piece of silver used as money. Ancient Indian texts from long ago, like the Arthashastra (written around 340–290 BCE), talk about silver coins called rūpyarūpa.

Other old coins were also mentioned. There were gold coins (suvarṇarūpa), copper coins (tāmrarūpa), and even lead coins (sīsarūpa). The rupee we know today comes from a silver coin called the rūpiya. This coin was first made by a ruler named Sher Shah Suri between 1540 and 1545. Later, the Mughal Empire kept using and standardizing it.

The History of Indian Money

Silver punch mark coin from the Maurya empire, called Rūpyarūpa, made around 3rd century BCE.

Silver coin of Skandagupta from the Gupta Empire, called Rūpaka, showing a peacock, from 455-467 CE.

The Rupiya coin, first made by Sher Shah Suri between 1540 and 1545.

India has a very old history of using coins. It was one of the first places in the world to make coins, around 600 BCE. This was around the same time as China and Lydia.

The Arthashastra, an ancient book, describes different types of coins. It mentions silver coins (rūpyarūpa), gold coins (suvarṇarūpa), copper coins (tamrarūpa), and lead coins (sīsarūpa). The word rūpa means 'form' or 'shape'.

The Gupta Empire also made many silver coins. These coins were influenced by earlier rulers. They were called Rūpaka and weighed about 2.2678 grams.

From Old Coins to Paper Money

The silver rupiya coin, first made by Sher Shah Suri, continued to be used for a long time. It was used during the Mughal period, the Maratha Empire, and even during British India.

Paper money, or banknotes, started appearing much later. Some of the first paper rupees were issued by banks like the Bank of Hindustan (1770–1832).

The British Influence on Indian Currency

During the 1800s, India was ruled by the British East India Company. In 1835, they decided to use a single silver rupee coin as the main currency. This coin was used throughout British India.

After the Indian Rebellion of 1857, the British government took direct control of India. The silver rupee coin remained the currency. In the 1890s, India switched to a "gold exchange standard." This meant that while silver coins and paper money were used daily, their value was linked to gold for international trade.

A New Rupee Sign for India

A 5 Rupee note from the Government of India, issued in 1858.

A 1 rupee note from the Government of India, issued in 1917.

In 2010, India got a brand new symbol for its currency: ₹. A designer named D. Udaya Kumar created it. It combines the Indian letter "र" (ra) and the Latin letter "R".

The two parallel lines at the top of the symbol are special. They look like the flag of India and also represent an equality sign. This equality sign shows India's wish to reduce economic differences. The first coins with this new symbol came out on July 8, 2011. Before this, India used "₨" and "Re" as symbols.

The Digital Rupee

India is also exploring a Digital Rupee. This would be a digital version of the rupee, like digital cash. It would be controlled by the Reserve Bank of India.

How Indian Money is Made and Used

The Indian government has special laws about money. The "Coinage Act of 1835" allowed the British to make coins in the name of the British king. After India became independent, new laws were made to manage currency.

Indian Coins: Past and Present

Coins After Independence (1950-Present)

After India became independent in 1947, new coins were made. The first ones, in 1950, included 1 pice, half, one, and two annas, and quarter, half, and one-rupee coins.

Decimal Coins (1957-Present)

In 1964, India started using aluminium coins for smaller amounts up to 20 paise.

In 1957, India changed its money system to a decimal system. This means one rupee was divided into 100 naye paise. Before, it was divided into 16 annas. In 1964, the word naye (meaning "new") was dropped from the coins.

Over the years, different metals were used for coins. Aluminum, cupro-nickel, and stainless steel were common. Some older coins, like the 25-paise coin, were stopped because their metal value was more than their face value.

Today, the coins you'll commonly see are one, two, five, ten, and twenty rupees. The 50-paise coin is still legal, but you rarely see it.

Where Coins Are Made

Coins are made at four special places called India Government Mints. These are in Mumbai, Kolkata, Hyderabad, and Noida. The government is the only one allowed to make coins.

Special Commemorative Coins

A postcard showing the Bombay Mint, where coins are made.

Sometimes, the Indian government makes special coins to remember important people or events. These are called commemorative coins. For example, coins were made for the 150th birthday of Rabindranath Tagore and 1000 years of the Brihadeeswarar Temple.

Coins Before Independence

An 1835 East India Company 2 Mohur coin.

An 1840 East India Company rupee coin, made in Bombay, Calcutta, and Madras.

Indian rupee (from 1862)

Front: Crowned picture of Queen Victoria

Back: Value, country, and year

Coin made of 91.7% silver

An 1862 Indian One Mohur coin.

A silver rupee coin from Sayajirao Gaekwad III of Baroda State (1875–1939), showing his side profile. This coin is from 1897 CE.

A coin made during the time of King/Emperor George V.

A 1 Indian rupee coin from 1947, showing George VI on the front and an Indian Lion on the back.

An Indian one pice coin, made in 1950.

A 1 Indian rupee coin from 1905, showing Edward VII.

A One Rupee coin made by Mir Mahbub Ali Khan of Hyderabad State in 1911.

A 1 Indian rupee coin from 1918, showing George V.

Before India became independent, the British East India Company made its own coins. Later, from 1862 to 1947, coins were made with the picture of the British Queen or King. These were called "regal issues."

Indian Banknotes

Banknotes After Independence

The first banknote of independent India, a one rupee note from 1949.

After independence, new banknotes were designed without the picture of George VI. The government kept printing the ₹1 note. The Reserve Bank of India (RBI) printed other notes, including very high values like ₹5,000 and ₹10,000 notes in 1949.

In the 1970s, ₹20 and ₹50 notes were introduced. However, notes higher than ₹100 were stopped in 1978. Later, in 1987, the ₹500 note was introduced, followed by the ₹1,000 note in 2000. The ₹1 and ₹2 notes were stopped in 1995.

A 10 Rupees banknote from the 1990s.

The design of banknotes is approved by the Government of India. They are printed at special presses in places like Nashik and Mysore. The current series of banknotes is called the Mahatma Gandhi Series. These notes have a picture of Mahatma Gandhi on the front. This series started in 1996 and replaced older notes.

In 2016, the Indian government made a big change. They stopped using the old ₹500 and ₹1,000 banknotes. New ₹500 banknotes were issued, and a new ₹2,000 banknote was also introduced. These new notes have different designs and colors. For example, the new ₹500 note is stone grey and shows the Red Fort.

New banknotes for ₹10, ₹20, ₹50, ₹100, and ₹200 have also been released. These are part of the Mahatma Gandhi New Series.

Current Banknotes in Use

As of May 2023, you can find banknotes in denominations of ₹5, ₹10, ₹20, ₹50, and ₹100 from the older Mahatma Gandhi Series. From the newer Mahatma Gandhi New Series, you will see ₹10, ₹20, ₹50, ₹100, ₹200, and ₹500 notes. The ₹2,000 note was withdrawn from circulation in 2023.

Image		Value	Dimensions	Main colour	Description			Date of issue	Circulation
Obverse	Reverse				Obverse	Reverse	Watermark
		₹1	97 mm × 63 mm	Pink	New ₹1 coin	Sagar Samrat oil rig	National Emblem of India	2020	Limited
		₹5	117 mm × 63 mm	Green	Mahatma Gandhi	Tractor	Mahatma Gandhi and electrotype denomination	2002 / 2009	Limited

New series banknotes

Image		Value	Dimensions	Main colour	Description			Date of issue	Circulation
Obverse	Reverse				Obverse	Reverse	Watermark
		₹10	123 mm × 63 mm	Brown	Mahatma Gandhi	Konark Sun Temple	Mahatma Gandhi and electrotype denomination	2017	Wide
		₹20	129 mm × 63 mm	Greenish Yellow		Ellora Caves		2019	Wide
		₹50	135 mm × 66 mm	Cyan		Hampi with Chariot		2017	Wide
		₹100	142 mm × 66 mm	Lavender		Rani ki vav		2018	Wide
		₹200	146 mm × 66 mm	Bright Yellow		Sanchi Stupa		2017	Wide
		₹500	150 mm × 66 mm	Stone grey		Red Fort		2016	Wide
		₹2000	66 mm × 166 mm	Magenta		Mangalyaan		2016	Withdrawn from circulation
For table standards, see the banknote specification table.

Tiny Details: Micro Printing

The new Indian banknotes have tiny words printed in special places. For example, on Mahatma Gandhi's spectacles, you can find "भारत" (Bhārata), which is Hindi for India. On his collar, it says "भारत" and "INDIA". These tiny details are part of the security features.

Micro printed words on Gandhi's spectacles.

Micro printed words on Gandhi's collar.

Banknotes Before Independence

A 10 rupees note from the Government of India, issued in 1910.

A British Indian one rupee note.

In 1861, the Government of India started issuing its first paper money. This included notes for ₹10, ₹5, and later much higher values. The Reserve Bank of India began printing banknotes in 1938.

How the Rupee is Traded (Convertibility)

The Indian rupee's value against other currencies changes based on the market. However, the Reserve Bank of India (RBI) sometimes steps in to keep the exchange rate stable. This is called a "managed float" system.

There are also rules about how much Indian rupees you can bring into or take out of the country. For example, you can only import or export up to ₹25,000 in cash. Also, certain high-value notes are not allowed in Nepal.

India has been slowly making it easier to exchange rupees for other currencies. This helps businesses trade and invest globally.

Important Dates for Rupee Convertibility

• 1991: India started to remove some rules on its currency. This made it easier to trade and send money.
• 1997: A plan was made to allow full convertibility by 2000, but it was paused due to a financial crisis in Asia.
• 2016: The government stopped using old ₹500 and ₹1,000 banknotes. This was done to fight illegal money and fake currency.
• 2023: The Reserve Bank of India announced that ₹2,000 notes would be taken out of circulation. This was because fewer of these notes were being used.

Rupee's Value Against Other Currencies

Historical Exchange Rates

A graph showing how the Indian rupee's value changed against the US dollar, British pound, Euro, and Japanese yen from 1998 to 2013.

For a long time, the Indian rupee's value was linked to silver. This caused problems when other major countries used gold as their standard. Later, the rupee's value was linked to the British pound and then the US dollar.

After India became independent, its exchange rate changed several times. In 1991, during an economic crisis, the rupee's value was lowered. Since then, it has mostly been a "floating exchange rate." This means its value changes based on supply and demand in the market.

Current Exchange Rates

The Rupee Around the World

The Indian rupee was once used in many other countries. This was because of India's history with the British Empire. Countries like Aden, Oman, Dubai, Kuwait, Bahrain, Qatar, Kenya, and Mauritius all used the Indian rupee at one point.

In 1959, India created a special currency called the Gulf rupee. This was for use outside India. It helped reduce gold smuggling. After India changed the rupee's value in 1966, many of these countries started using their own money.

Today, the Bhutanese ngultrum has the same value as the Indian rupee. Both currencies are accepted in Bhutan. The Nepalese rupee is also linked to the Indian rupee. Indian rupees are accepted in Bhutan and Nepal, but some high-value notes are not legal there.

Images for kids

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  Banknotes of the Indian Rupee

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  Coins of the Indian rupee

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  Silver punch mark coin from the Maurya empire, called Rūpyarūpa, made around 3rd century BCE.

• 

  Silver coin of Skandagupta from the Gupta Empire, called Rūpaka, showing a peacock, from 455-467 CE.

• 

  The Rupiya coin, first made by Sher Shah Suri between 1540 and 1545.

• 

  A 5 Rupee note from the Government of India, issued in 1858.

• 

  A 1 rupee note from the Government of India, issued in 1917.

• 

  The first banknote of independent India, a one rupee note from 1949.

• 

  10 Rupees banknote from the 1990s.

• 

  Micro printed words on Gandhi's spectacles.

• 

  Micro printed words on Gandhi's collar.

• 

  A 10 rupees note from the Government of India, issued in 1910.

• 

  A British Indian one rupee note.

• 

  A graph showing how the Indian rupee's value changed against the US dollar, British pound, Euro, and Japanese yen from 1998 to 2013.