INR Full Form is Indian Rupee. Every country has a specific currency and an abbreviation for that currency. The Indian currency is termed as INR or in other words Indian Rupee. In fact, INR is the official ISO code given to the Indian currency. It came into use after gaining independence in 1947. Prior to that, the money had the British Sovereign’s picture printed on the notes and coins to display the British rule and hold over India.
Often INR is denoted by the prefix ‘Rs.’ Followed by the number of the value of the currency. However, the recent discovery or replacement for INR is ‘₹’. The Indian Rupee used to be represented as “Rs.” in earlier times. However, the new Rupee symbol that is in use now is “`”This new code was officially adopted in the year 2010. The symbol was taken from Devanagari consonant, which denotes ‘ra’.
DIFFERENT FORMS OF INR
Indian Rupee is available in two forms. They are Coins and Notes. Indian rupee is the note form of the currency and the smaller denominations in coins are called “paise”. The “Coin” form of the Indian Rupee has the denominations of 1 Rupee, 2 Rupees, 5 Rupees, and 10 Rupees. In the past, there were coins of the value of 5 paisa, 10 paisa, 20 paisa, 25 paisa, 50 paisa. Recently, RBI (Reserve Bank of India) removed those denominations from the Indian financial system. One Indian Rupee is made up of 100 paise.
However, over the period of time, all the lower denomination coins, now including the 25 paise one have been discontinued and only available and running currency in the market is coins of 50 paise, 1 rupee, 2 rupees, 5rupees and 10 rupees. The “Notes” form of the Indian Rupee has the denominations of 10 Rupees, 20 Rupees, 50 Rupees, 100 Rupees, 500 Rupees and 1000 Rupees. Sher Shah Suri initially created Indian Rupee during the middle ages and the value of 1-INR was 40 pieces of copper.
It was in 1770 that paper currencies came into existence. The Indian currency is managed by Reserve Bank, based on the India Act 1934. The Indian currency has seen a lot of change since it was first introduced and the coin forms have also changed. Now they no more mint coins of copper, etc and only paise are available. In olden days, the currency was available in ½, 1 and 2 annas and the 25 and 50 paise were available as ¼ and ½ rupee coins.
PRESENT DAY CURRENCY
As noted before, Indian Rupee or the currency has seen a lot of transformation over the years. There are many commemorative coins minted to mark various occasions. There were coins of Nehru, Gandhi, Goddess, family planning, literacy awareness, etc. These commemorative coins are used in the market, yet they are mostly a collector’s item and many rare coin collection enthusiasts make it a point to add these coins to their album as memories.
The rupee note of various denominations is safeguarded by the Reserve Bank of India by using different security measures. Some of the important features are Watermark, Micro-lettering, Latent image, Security thread, optically variable ink, Identification mark and Intaglio printing amongst others. The series of notes, especially 500 and 1000 rupees denomination have a watermark of Mahatma Gandhi in the watermark window with lines crossing over the picture in multi-direction.
When the note is held at eye level, the latent image of the note’s denomination in numeral is visible on the right side of Mahatma Gandhi’s image in a vertical band. Micro-lettering is between the vertical band and Gandhi’s portrait and 5 and 10 rupee notes have the words “RBI” written whereas rupees 20 and above have the denomination value printed. This is better viewed using a magnifying glass.
Intaglio printing means raised or embossed printing and the left side of note contain Mahatma Gandhi’s portrait, Ashoka Pillar emblem, Reserve Bank seal and promise and guarantee clause. The right side has the signature of the RBI Governor. These features can be easily felt by touch.
VALUE OF INR IN GLOBAL MARKET
India is seen as a rising economy and thus, Indian Rupee has a good standing against many important currencies of the world. The Reserve Bank of India has full control over the fluctuating rate of the rupee with respect to different currencies. According to the current market, the Indian Rupee is around 66 to 67 per US Dollar ($), 75 to 76 against Euro (€) and 96 to 97 against British Pound Sterling (£). It is barely 61 paise against 1 Japanese Yen (¥)
The value of rupee is determined by the demand in global market. Foreign direct investment in the form of factory, land or interest in Indian companies as joint ventures etc can help in boosting the price of the rupee in the market. Other factors that can influence the rate of rupee are the export-import of the country and the trading in Forex market.
Commodities like oil and gas can also influence the value of the Rupee since India imports almost 70% of oil from various countries. Government policies and effect of global sanctions, various agreements and any bilateral treaties that are signed can make the demand for the currency go up or down, thus fluctuating the rate of exchange in the global market.
THE ORIGIN OF INR
The Government of India has the sole authority to imprint the coins and notes. The design and denomination of the currency are also decided by the Government. There are 4 authorized Government mints where the notes and coins are made – Mumbai, Alipore (Kolkata), Cherlapally & Saifabad (Hyderabad) and NOIDA (UP). Small coins are those till the value of 50 paise. Others are called “Rupee coins” and start with the lowest denomination of 1 rupee. As per the Government norms, coins can be issued up to the value of 1000 rupees.
Coins and notes received from the mints are distributed for circulation in the market through the Regional Issuing offices and sub-offices of the Reserve Bank of India. These offices are situated in all the major cities of India like Ahmedabad, Belapur (Navi Mumbai), New Delhi, Jammu, Patna, Mumbai, Nagpur, Trivandrum, Chennai, Guwahati, Bhopal, Bhubaneshwar, Bangalore, Lucknow, Kolkata, Kanpur, Chandigarh, and Jaipur. These office counters issue the currency directly to the public as well as send them to currency chests and coin depots.
In order to facilitate easy obtain of coins, there are coin dispensing machines installed in certain Regional offices of the RBI. There are single window counters in many of RBI offices where the public can get packed pouches of coins in various denominations. Reserve Bank has started the facility of mobile counters in important commercial and market areas in order to exchange soiled or torn notes in favor of coins.
IMPORTANCE OF INR
When you purchase anything anywhere in the world, it is always in exchange for some monetary payment. In India, the purchasing power lies in the Indian Rupee. All payments to residents of India are to be made in Indian Rupees as per law. However, when there are transactions with any foreign parties and the payment is remitted in foreign currency, it invariably gets converted to INR before being deposited in your bank account. In this case, the money obtained in foreign currency is converted to INR as per that day’s current market exchange rate of currency.
The rupee has got a tremendous purchase power and without money, it is impossible to survive in this world as money has got the importance of being a means of survival for an individual. Every place we go be it market, institutions or hospitals, money is required everywhere to make the life move forward. As far as selling and buying of currency is involved, the buying rate is always higher than the selling rate. The value of Indian Rupee also varies from day to day and therefore the US$ that ticked at 47 rupees a few years ago has crossed the 60 mark.