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The series is so named because the obverse of each note features a portrait of Mahatma Gandhi.

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In , administration of the Straits Settlements was separated from India and the Straits dollar was made the standard currency, and attempts to reintroduce the rupee were finally abandoned. After the Partition of India , the Pakistani rupee came into existence, initially using Indian coins and Indian currency notes simply overstamped with "Pakistan". The creation of a separate currency was an attempt to reduce the strain on India's foreign reserves from gold smuggling. Kuwait and Bahrain had already done so in with Kuwaiti dinar and in with Bahraini dinar , respectively.

The Bhutanese ngultrum is pegged at par with the Indian rupee; both currencies are accepted in Bhutan. Madras also issued two-rupee coins. Copper denominations were more varied. Madras also issued the Madras fanam until In , a single coinage for the EIC was introduced. The coinage of the EIC continued to be issued until , even after the Company had been taken over by the Crown.

In , coins were introduced known as "regal issues" which bore the portrait of Queen Victoria and the designation "India". In , bronze replaced copper for the lowest three denominations; in , a cupro-nickel one-anna coin was introduced. In — cupro-nickel two-, four- and eight-annas were introduced, although the four- and eight-annas coins were only issued until and did not replace their silver equivalents. In , the Bombay mint also struck gold sovereigns and rupee coins identical in size to the sovereigns as an emergency measure during the First World War.

In the early s, several changes were implemented. The sizes and composition were the same as the final regal issues, except for the one-pice which was bronze, but not holed. The first decimal-coin issues in India consisted of 1, 2, 5, 10, 25 and 50 naye paise, and 1 rupee. In , the word naya e was removed from all coins. Between and , aluminium one-, two-, three-, five- and ten-paise coins were introduced.

In nickel-brass paise coins were introduced, and replaced by aluminium coins in Between and , cupro-nickel replaced nickel in the and paise and the 1-rupee coins; in , cupro-nickel two-rupee coins were introduced. In stainless steel , and paise coins were introduced, followed by 1- and 5-rupee coins in Between and 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 older coins, whose face value was less than their scrap value. Coins commonly in circulation are one, two, five and ten rupees. The coins are minted at the four locations of the India Government Mint. Coins minted with the "hand picture" were minted from onwards. The Government of India has the only right to mint the coins and one rupee note. The responsibility for coinage comes under the Coinage Act, which is amended from time to time.

The designing and minting of coins in various denominations is also the responsibility of the Government of India. After independence, the Government of India mint, minted coins imprinted with Indian statesmen, historical and religious figures. In , the government of India introduced its first paper money: After independence, new designs were introduced to replace the portrait of George VI. All pre-independence banknotes were officially demonetised with effect from 28 April The design of banknotes is approved by the central government , on the recommendation of the central board of the Reserve Bank of India.

The series is so named because the obverse of each note features a portrait of Mahatma Gandhi. Since its introduction in , this series has replaced all issued banknotes of the Lion capital series. The deadline was later extended to 1 January The dead line was further extended to 30 June The denomination also has a motif of the Mars Orbiter Mission MOM on the back, depicting the country's first venture into interplanetary space.

Both the banknotes also have the Swachh Bharat Abhiyan logo printed on the back. The design is similar to the current notes in the Mahatma Gandhi New Series, except they will come with an inset 'A'. Officially, the Indian rupee has a market-determined exchange rate. Thus, the currency regime in place for the Indian rupee with respect to the US dollar is a de facto controlled exchange rate. This is sometimes called a " managed float ".

RBI intervention 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. Also affecting convertibility is a series of customs regulations restricting the import and export of rupees.

RBI also exercises a system of capital controls in addition to 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. There 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 circumstances due to gold's lack of liquidity; [ citation needed ] therefore, money cannot be changed into gold by the RBI.

India follows the same principle as Great Britain and the US. Reserve Bank of India clarifies its position regarding the promissory clause printed on each banknote:.

This is payable on demand by RBI, being the issuer. The Bank's obligation 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. The obligation on the part of the Bank is to exchange a banknote for coins of an equivalent amount.

For almost a century following the Great Recoinage of , and adoption of the Gold Standard , until the outbreak of World War I, the silver backed Indian rupee lost value against a basket of Gold pegged currencies, and was periodically devalued to reflect the then current gold to silver reserve ratios , see above. The gold silver ratio expanded during — Unlike India, her colonial master Britain was on gold standard.

To meet the Home Charges i. From Wikipedia, the free encyclopedia. For the Malayalam film, see Indian Rupee film. For other uses, see Rupee disambiguation. History of the rupee. This section needs additional citations for verification.

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Reserve Bank of India. Archived from the original on 12 January Retrieved 5 November Retrieved 16 November RBI Notice" Press release. Retrieved 13 November Retrieved 8 November Archived from the original on Sher Shah issued a coin of silver which was termed the Rupiya.

This weighed grains and was the precursor of the modern rupee. Retrieved 20 June Retrieved 20 September Retrieved on 4 May Retrieved 1 March Retrieved 27 October