The Indian rupee is the official currency of the Republic of India. The issuance of the currency is mainly controlled by the Reserve Bank of India. The rupee is named after the silver coin, rupiya, first issued by Sultan Sher Shah Suri in the 16th century and later continued by the Mughal Empire.

THE WORD RUPEE

The word ‘rupee’ was derived from the Sanskrit word (rupyakam) or rupaya (meaning ‘wrought silver, a coin of silver’).

A NEW SYMBOL WAS
OFFICIALLY ADOPTED

In 2010, a new symbol was officially adopted. It was derived from the combination of the Devanagari consonant and the Latin capital letter ‘R’ without its vertical bar. The parallel lines at the top are said to make an allusion to tricolour Indian Flag and also depict an equality sign that symbolizes the nation’s desire to reduce the economic disparity.

THE FIRST

The first series of coins with the new rupee symbol started in circulation on 8 July 2011.

DEMONETISATION OF
RUPEES 500 and 1000

In a major step to check undeclared black money, the Government of India on the 8 November 2016 announced demonetization of rupees 500 and 1000 banknotes with effect from the same day’s midnight, making these notes invalid. Apart from combating black money, the stated purpose is also to eliminate fake currency and corruption.

A NEW REDESIGNED
SERIES OF RUPEES

A new redesigned series of rupees 500 banknote, in addition to a new denomination of rupees 2000 banknote is in circulation since 10 November 2016. The new redesigned series is also expected to be introduced to the banknote denominations of rupees 1000, 100, and 50 soon.

CURRENT CIRCULATING
BANK NOTES

As of 10 November 2016, the current circulating banknotes are in denominations of rupees 5, 20, 50 and 100 are the Mahatma Gandhi Series, while the denominations of rupees 500 and 2000 are the Mahatma Gandhi New Series, and the domination of rupee one is of the Lion Capital Series.

OTHER IMPORTANT
FUNCTIONS OF
RESERVE BANK OF INDIA

1)    Controlling Credit:  Control of credit is one of the main functions of the Reserve Bank of India. This is made possible by bringing about changes in the rate of interest. As rate of interest increases, volume of loans decreases and vice versa.
2)    Banker to Government:  Another function of the Reserve Bank of India is to serve as the banker to the central and state governments. As a banker to the government, the Reserve Bank of India accepts deposits from the government, sanctions loans and renders other banking services to them.
3)    Banker’s Bank:  In India, Reserve Bank of India is the apex bank which controls all other banks. To advise and assist all banks in their operations is a function of the Reserve Bank. It acts as a last resort to all banks in their financial matters. Moreover, it controls and gives the necessary directions and advices to the financial institutions in the country.
          
   MUMBAI
                  
The Reserve Bank of India was established in 1935. Its headquarters is in Mumbai.

CURRENCIES IN
DIFFERENT COUNTRIES

1)    United States -    Dollar
2)    Japanese -    Yen
3)    Australian -    Dollar
4)    Canadian -    Dollar
5)    Swiss     -    Franc
6)    Chinese -    Yuan
7)    Swedish -    Krona
8)    Mexican -    Peso
9)    Hong Kong -    Dollar
10)    Turkish -    Lira
11)    Russian -    Ruble
12)    Brazilian -    Real
13)    South Korean -    Won
14)    New Zealand -    Dollar
15)    Singapore -    Dollar