Who designed the new Indian banknotes

Indian Rupee - Indian rupee

Official currency of India
Indian Rupee
ISO 4217
code INR
Denominations
Subunit
1 ⁄ 100 Paisa
symbol £ (formerly ₨)
Paisa (formerly p)
Banknotes
Freq. used £ 10 , £ 20 , £ 50 , £ 100 , £ 200 , £ 500 , £ 2000
Hardly used £ 1 , £ 2 , £ 5
Coins
Freq. used £ 1 , £ 2 , £ 5 , £ 10 , £ 20
Hardly used 50p
Demographics
Official users
Unofficial users
output
Central bank Reserve Bank of India
printer India Limited security printing and coinage company
website spmcil .com
mint India Government Mint
website spmcil .com
rating
inflation 4,4% (2017–18)
source RBI - Annual Inflation Report
method CPI
Pegged by Bhutanese ngultrum (at face value) Nepalese rupee (£ 1 = £ 1.6)

The Indian Rupee ( Character : ; Currency: INR ) is the official currency of India. The rupee is in 100 Paise (Singular: Paisa ), although as of 2019 coins with a denomination of 1 rupee are the lowest value used. The issuance of the currency is controlled by the Reserve Bank of India. The Reserve Bank administers the currency in India and derives its role in currency management based on the Reserve Bank of India Act of 1934.

In 2010 a new rupee sign (£) was officially adopted. It was designed by D. Udaya Kumar. It was derived from the combination of the Devanagari consonant "र" ( ra ) and the Latin capital letter "R" without vertical bars (similar to the R rotunda). The parallel lines above (with spaces in between) are meant to nod to the tri-color Indian flag and also represent an equal sign, symbolizing the nation's desire to reduce economic inequality. The first series of coins with the new rupee mark was put into circulation on July 8, 2011. Before that, India used "₨" and "Re" as symbols for several rupees and one rupee, respectively.

On November 8, 2016 the government of India announced the demonetization of ₹ 500 and ₹ 1000 banknotes with effect from midnight of the same day, invalidating these notes. A newly revised series of ₹ 500 banknote, in addition to a new denomination of ₹ 2000 banknote in circulation since November 10, 2016. The ₹ 1000 note has been suspended.

On August 25, 2017, a new denomination of GBP 200 was added to the Indian currency structure to fill the banknote gap due to the high demand for this banknote after the demonstration.

In July 2018, the Reserve Bank of India released the redesigned series of 100 pound notes.

etymology

The immediate forerunner of the rupee is the Rupūiya - the 178 grain silver coin, minted in northern India by the first Sher Shah Suri during his brief reign between 1540 and 1545 and later adopted and standardized by the Mughal Empire. The weight remained unchanged until well into the end of the Mughals until the 20th century. Though Pāṇini rūpya mentioned, it is unclear whether it was referring to coins. Arthashastra , written by Chanakya, Prime Minister of the first Maurya emperor Chandragupta Maurya (c. 340–290 BC), mentions silver coins as rūpyarūpa . Other types of coins, including gold coins ( suvarṇarūpa ), Copper coins ( tāmrarūpa ) and Lead coins ( sīsarūpa ) are also mentioned.

history

The history of the Indian rupee goes back to ancient India in the 6th century BC. BC back. Ancient India was one of the earliest coin issuers in the world, along with the Chinese Wen and Lydian staters.

Arthashastra , written by Chanakya, Prime Minister of the first Maurya emperor Chandragupta Maurya (c. 340–290 BC), mentions silver coins as rūpyarūpa , other types such as gold coins (suvarṇarūpa), copper coins (tamrarūpa) and lead coins (sīsarūpa). Are named. Rūpa means "shape" or "shape"; For example in the word rūpyarūpa : rūpya 'Forged silver' and rūpa 'Shape'.

In the meantime, there was no fixed monetary system like that of Da Tang Xi Yu Ji reports .

During his five-year reign from 1540 to 1545, Sultan Sher Shah Suri issued a silver coin weighing 178 grains (or 11.53 grams), also known as the Rupiya was designated . During Babur's time the ratio of brass to silver was approximately 50: 2. The silver coin remained in use during the Mughal, Maratha and British India periods. The earliest issues of paper rupees include: the Bank of Hindustan (1770–1832), the General Bank of Bengal and Bihar (1773–75, founded by Warren Hastings), and the Bengal Bank (1784–91).

1800s

Indian silver rupee value (1850-1900)
year Exchange rate (pence per rupee) Melting value (pence per rupee)
1850 24.3 22.7
1851 24.1 22.7
1852 23.9 22.5
1853 24.1 22.8
1854 23.1 22.8
1855 24.2 22.8
1856 24.2 22.8
1857 24.6 22.9
1858 25.7 22.8
1859 26.0 23.0
1860 26.0 22.9
1861 23.9 22.6
1862 23.9 22.8
1863 23.9 22.8
1864 23.9 22.8
1865 23.8 22.7
1866 23.1 22.7
1867 23.2 22.5
1868 23.2 22.5
1869 23.3 22.5
1870 22.5 22.5
1871 23.1 22.5
1872 22.7 22.4
1873 22.3 22.0
1874 22.1 21.6
1875 21.6 21.1
1876 20.5 19.6
1877 20.8 20.4
1878 19.8 19.5
1879 20.0 19.0
1880 19.9 19.4
1881 19.9 19.2
1882 19.5 19.3
1883 19.5 18.7
1884 19.3 18.8
1885 18.2 18.0
1886 17.4 16.8
1887 16.9 16.6
1888 16.4 15.9
1889 16.5 15.8
1890 18.0 17.7
1891 16.7 16.7
1892 15.0 14.8
1893 14.5 13.2
1894 13.1 10.7
1895 13.6 11.1
1896 14.4 11.5
1897 15.3 10.2
1898 16.0 10.0
1899 16.0 10.2
1900 16.0 10.4

Historically, the rupee was a silver coin. This had dire ramifications in the nineteenth century when the world's strongest economies were on the gold standard (i.e., gold-linked paper). The discovery of large amounts of silver in the United States and some European colonies caused the panic of 1873, which resulted in a decline in the value of silver relative to gold, India's currency devaluing. This event became known as "the fall of the rupee". In Britain, the long depression resulted in bankruptcies, an escalation in unemployment, a halt in public works and a major trade slump that lasted until 1897.

India was unaffected by the Imperial Order-in-Council of 1825, which British attempted to introduce sterling coins to the British colonies. India was controlled by the British East India Company at the time. The silver rupee coin continued to be the currency of India through the British Raj and beyond. In 1835 British India adopted a monometallic silver standard based on the rupee coin. This decision was influenced by a letter from Lord Liverpool in 1805 extolling the virtues of monometallism.

After the First War of Independence in 1857, the British government took direct control of India. Since 1851 have been in the Royal Mint in Sydney Lots of gold sovereigns produced . In an attempt in 1864 to make the British gold sovereign the "imperial coin", the treasuries in Bombay and Calcutta were instructed to receive (but not spend) gold sovereigns; Hence, these gold sovereigns never left the vaults. For the same reason, when the British government gave up hope of replacing the rupee with the pound sterling in India, it realized that it could not replace the silver dollar with the Indian rupee in the Straits Settlements (as the British East India Company had requested ). Since the silver crisis of 1873, several nations switched to an over gold standard (with silver or banknotes circulating locally, but with a fixed gold value for export), including India in the 1890s.

India Council bill

Around 1875, Britain began paying India for exported goods in India Council Bills (instead of silver).

Therefore, if the India Council in London did not intervene to sell invoices through India, the merchants and bankers would have to send silver to settle the (trade) balances. In 1875, for example, the India Council in London stopped a canal for the outflow of silver.

The great importance of these (council) bills, however, is the effect they have on the market price of silver: and in recent years they have actually been one of the strongest factors in the reduction in the value of silver compared to gold.

The Indian and Chinese products for which silver is paid for have been and are very cheap since 1873/74, which is why less silver is needed to buy a larger amount of Eastern goods. Now, considering the various agents, it certainly won't seem very mysterious as to why silver shouldn't just have fallen in price

The big nations had used two tools to replenish their treasuries: firstly, loans and, secondly, the more convenient forced loans for paper money۔

Fowler Committee (1898)

The Indian Currency Committee or Fowler Committee was a government committee appointed on April 29, 1898 by the British-led Indian government to study the currency situation in India. They collected a wide range of testimonies, examined up to forty-nine witnesses, and only reported their conclusions in July 1899 after more than a year of deliberation.

The prophecy that Mr. AM Lindsay made before the Committee in 1898 when he proposed a scheme very similar in principle to what was ultimately adopted has largely been fulfilled. "This change," he said, "will go unnoticed except by the smart few, and it is satisfactory to note that through this almost imperceptible process, the Indian currency is placed on what Ricardo and other major agencies have advocated . " The best of all monetary systems, namely one in which the currency media used in internal circulation is limited to banknotes and cheap token coins that act exactly as if they were gold pieces by making them convertible to gold for foreign payment purposes, the committee voted that Government of India agrees that mints should remain closed to unrestricted minting of silver and that a gold standard should be adopted immediately. They recommended (1) that the British sovereign be given full legal tender in India and (2) that the Indian mints be opened to their unrestricted minting (for gold coins only).

These recommendations were acceptable to both governments and were soon implemented into law. The law making gold legal tender was promulgated on September 15, 1899. Soon after, preparations were made for gold sovereigns to mint coins at the Bombay mint. This law was only intended to cheat the Indian people as sovereign gold coins were never minted in India.

Silver has therefore ceased to serve as a standard; and the present day Indian monetary system (i.e. 1901) can be described as that of a "limping" gold standard similar to the systems of France, Germany, Holland and the United States.

The committee of 1898 expressly declared itself in favor of the eventual introduction of a gold standard.
That goal, if it was their goal, the Indian government never achieved.

1900s

In 1913 John Maynard Keynes wrote in his book Indian Currency and Finance, that in the 1900–1901 financial year gold coins (government bonds) valued at £ 6,750,000 were issued to Indians in the hope of being circulated as currency. But contrary to government expectation, not even half of it was returned to the government, and this experiment failed spectacularly, causing the government to abandon the practice (but not abandon the gold standard narrative). As a punishment for this loss of gold, all gold held by the Indian government was shipped to the Bank of England in 1901.

Gold Standard Issues

At the beginning of the First World War, the cost of gold was very low and therefore the pound sterling was valuable. But during World War I, the value of the pound fell alarmingly due to rising war spending. At the end of the war, the value of the pound was only a fraction of what it was before the war began. It stayed low until 1925 when then the UK's then Chancellor of the Exchequer (Treasury Secretary) Winston Churchill brought it back to pre-war levels. As a result, the price of gold fell rapidly. While the rest of Europe bought large amounts of gold from the UK, their gold reserves barely increased. This was a blow to an already deteriorating British economy. The UK began to consider its possessions as India to offset the gold it sold.

The price of gold in India, however, based on the exchange rate of the rupee, was 1.55 d lower than the practically prevailing price abroad; The price differences made exporting the metal profitable, which lasted almost a decade. Thus, from 1931 to 1932 there were net exports of 7.7 million ounces valued at Rs. 579.8 million. In the following year, both volume and price continued to increase and net exports were 8.4 million ounces valued at Rs. 655.2 million. For the decade to March 1941, total net exports were on the order of 43 million ounces (1337.3 tons) worth about Rs. 3.75 billion, or an average price of Rs. 32-12-4 per tola.

In the autumn of 1917 (when the price of silver rose to 55 pence) there was a risk of revolts (against paper currency) in India, which seriously hampered British participation in the World War. The non-convertibility (from paper currency to coins) would lead to a run on postal savings banks. This would prevent the further expansion of (paper currency) banknote problems and cause a price increase in paper currency, which would significantly increase the cost of procuring war goods for export, and a reduction in the silver content of this historical [rupee] coin would have been such a thing Can arouse popular distrust of the government that would have sparked an internal crisis that would have been fatal to Britain's success in the war.

From 1931 to 1941, the United Kingdom bought a large amount of gold from India and its many other colonies by increasing the price of gold because Britain was able to pay in printable paper currency. Similarly, on June 19, 1934, Roosevelt enacted the Silver Purchase Act (which raised the price of silver) and bought approximately 44,000 tons of silver by paying paper certificates (silver certificate).

In 1939, Dickson H. Leavens wrote in his book Silver money : "In recent years the increased price of gold, measured in depreciated paper currencies, has attracted the market (of London) with large quantities (of gold) that were formerly hoarded or held in the shape of ornaments in India and China".

The Indian rupee replaced the Danish Indian rupee in 1845, the French Indian rupee in 1954 and the Portuguese Indian escudo in 1961. After India became independent in 1947 and the princely states joined the new union, the Indian rupee replaced all currencies of the previously autonomous states (although the Hyderabadi rupee was only demonized in 1959). Some states had issued rupees equivalent to those of the British (such as the Travancore rupee). Other currencies (including the Hyderabadi rupee and the Kutch Kori) had different values.

The values ​​of the subdivisions of the rupee during British rule (and the first decade of independence) were:

Value (in anna) Popular name Value (in paise)
16 anna 1 rupee 100 paise
8 anna 1 ardharupee / 1 athanni (dheli) 50 paise
4 anna 1 Pavala / 1 Chawanni 25 paise
2 anna 1 beda / 1 duanni 12 paise
1 anna 1 ekanni 6 paise
1 ⁄ 2 anna 1 Paraka / 1 Taka / 1 Adhanni 3 paise
1 ⁄ 4 anna 1 Kani (piece) / 1 Paisa (old Paise) 1 1 ⁄ 2 paise
1 ⁄ 8 anna 1 Dhela 3 ⁄ 4 paisa
1 ⁄ 12 anna 1 cake 1 ⁄ 2 paisa
  • In 1957 the rupee was decimalized and divided into 100 naye paise (Hindi for 'new paise');
  • In 1964 the original "Naye" was dropped.
  • Many still refer to 25, 50 and 75 paise as 4, 8 and 12 are annas.
  • similar to the use of "two bits" in American English for a quarter of a dollar.

Worldwide usage of rupees

Since the Straits Settlements were originally an outpost of the British East India Company, the Indian rupee was made the only official currency in the Straits Settlements in 1837 as it was administered as part of British India. The locals resisted this attempt. However, the Spanish dollar continued to circulate and in 1845 coinage for the Straits Settlements was introduced with a system of 100 cents = 1 dollar, with the dollar corresponding to the Spanish dollar or the Mexican peso. In 1867 the administration of the Straits Settlements was separated from India and the Straits dollar made the standard currency, and attempts to reintroduce the rupee were finally abandoned.

After the partition of India, the Pakistani rupee was created, initially using Indian coins and Indian banknotes, which were simply overstamped with "Pakistan". Previously, the Indian rupee was an official currency of other countries including Aden, Oman, Dubai, Kuwait, Bahrain, Qatar, the Trucial States, Kenya, Tanganyika, Uganda, Seychelles and Mauritius.

The Government of India introduced the Gulf rupee - also known as the Gulf Persian rupee (XPGR) - to replace the Indian rupee for circulation outside the country with the Reserve Bank of India Act (Amendment) of May 1, 1959 A separate currency was an attempt to ease the strain on Indian foreign exchange reserves from gold smuggling. After India devalued the rupee on June 6, 1966, the countries still in use - Oman, Qatar, and the Trucial States (which became the United Arab Emirates in 1971) - replaced the Gulf rupee with their own currencies. Kuwait and Bahrain had already done this in 1961 with the Kuwaiti dinar and in 1965 with the Bahraini dinar.

The Bhutanese ngultrum is equal to the Indian rupee; Both currencies are accepted in Bhutan. The Nepalese rupee is pegged at £ 0.625; The Indian rupee is accepted in Bhutan and Nepal, with the exception of ₹ 500 and ₹ 1000 Mahatma Gandhi series banknotes and the ₹ 200, ₹ 500 and ₹ 2000 banknotes of the Mahatma Gandhi New Series, which are not legal tender in Bhutan and Nepal and are banned by their respective governments, although they are accepted by many retailers. On January 29, 2014, Zimbabwe added the Indian rupee as legal tender.

Coins

Questions before independence

Indian rupee (from 1862).
back : Face value, country and date, surrounded by a wreath.

East India Company, 1835

The three presidencies established by the British East India Company (Bengal, Bombay and Madras) each issued their own coins until 1835. All three spent rupees and fractions thereof up to 1⁄8 and 1⁄16 rupees in silver. Madras also issued two rupee coins.

The copper designations were more diverse. Bengal issued one-pie, 1/2, one and two paise coins. Bombay issued 1-cake, 1 ⁄ 4, 1 ⁄ 2, 1, 1 1 ⁄ 2, 2, and 4-paisse coins. In Madras there were copper coins for two and four cakes and one, two and four paisas, with the first two denoted as 1 ⁄ 2 and a dub rupee (or 1 ⁄ 96 and 1 ⁄ 48). Madras also published the Madras-Fanam until 1815.

All three presidencies issued gold mohurs and factions of mohurs, including 1 ⁄ 16, 1 ⁄ 2, 1 ⁄ 4 in Bengal, 1 ⁄ 15 (one gold rupee) and 1 ⁄ 3 (pancia) in Bombay and 1 ⁄ 4, 1 ⁄ 3 and 1 ⁄ 2 in Madras.

In 1835 a single coinage was introduced for the EIC. It consisted of copper 1 ⁄ 12, 1 ⁄ 4 and 1 ⁄ 2 anna, silver 1 ⁄ 4, 1 ⁄ 3 and 1 rupee and gold 1 and 2 mohurs. Silver 2 annas were added in 1841, followed by copper 1 ⁄ 2 pieces in 1853. EIC minting continued until 1862, even after the company was taken over by the Crown.

Royal Editions, 1862–1947

In 1862, coins (known as "royal editions") bearing the portrait of Queen Victoria and the designation "India" were introduced. Their denominations were 1 ⁄ 12 Anna, 1 ⁄ 2 pieces, 1 ⁄ 4 and 1 ⁄ 2 Anna (all in copper), 2 Anna, 1 ⁄ 4, 1 ⁄ 2 and one rupee (silver) as well as five and ten rupees and one Mohur (gold). The gold denominations ceased production in 1891, and 1 ⁄ 2 anna coins were no longer issued after 1877.

In 1906 bronze replaced copper for the lowest three denominations; In 1907 a Cupro Nickel One Anna coin was introduced. Cupernickel two, four, and eight annas coins were introduced in 1918-1919, although the four and eight annas coins were only issued until 1921 and did not replace their silver equivalents. In 1918, the Bombay Mint also struck gold sovereigns and 15 rupee coins identical in size to the rulers as an emergency measure during World War I.

Several changes were made in the early 1940s. The production of 1 ⁄ 12 Anna and 1 ⁄ 2 pieces was discontinued, the 1 ⁄ 4 Anna was converted into a bronze, perforated coin, copper-nickel and nickel-brass 1 ⁄ 2 -anna coins were introduced, nickel-brass became used some one and two annas coins to make, and the silver composition was reduced from 91.7 to 50 percent. The last of the royal editions were cupro-nickel 1 ⁄ 4, 1 ⁄ 2 and one rupee pieces, minted in 1946 and 1947 and with the image of George VI on the front. , King and emperor and on the back carried an Indian lion.

Questions about independence

Independent questions before the decimal point, 1950–1957

India's first coins after independence were issued in 1950 in denominations of 1 piece, 1 ⁄ 2, one and two annas, 1 ⁄ 4, 1 ⁄ 2 and one rupee. The sizes and composition were the same as the previous royal editions, with the exception of the one-piece (which was made of bronze but was not perforated).

Independent decimal places, 1957-present

The first decimal coin issues in India consisted of 1, 2, 5, 10, 25 and 50 Naye Paise and 1 rupee. The 1 Naya Paisa was bronze; The 2, 5, and 10 Naye Paise were cupro-nickel, and the 25 Naye Paise (nickname Chawanni ; 25 Naye Paise corresponds to 4 Annas), 50 Naye Paise (also Called Athanni ; 50 Naye Paise was equivalent to 8 old Annas) and 1 rupee was nickel. 1964 were the words Oh well / naye removed from all coins. Between 1957 and 1967 aluminum one-, two-, three-, five- and ten-paisse coins were introduced. In 1968, 20 paisse coins made of nickel brass were introduced and in 1982 they were replaced by aluminum coins. Between 1972 and 1975, cupronickel replaced nickel in the 25 and 50 paisse and 1 rupee coins. In 1982 copper-nickel two rupee coins were introduced. Stainless steel coins of 10, 25 and 50 Paise were introduced in 1988, followed by 1 and 5 rupee coins in 1992. Five rupee coins made of brass are minted by the Reserve Bank of India (RBI). .

In 1997 the 20 paise coin was discontinued, followed by the 10 paise coin in 1998 and the 25 paise coin in 2002.

Between 2005 and 2008, new, lighter 50 paises, one, two, and five rupees coins made from ferritic stainless steel were introduced. The move was triggered by the melting down of older coins whose face value was below their scrap value. The demonstration of the 25 paise coin and all underlying paise coins took place, and a new series of coins (50 paise - nickname Athanni - one, two, five and ten rupees with the new rupee symbol) was put into circulation in 2011. The 50 paise coin was last minted in 2016, but small priced items are 50 paise. Coins that are commonly in circulation are one, two, five, ten and twenty rupees. Although it is still legal tender, the 50 Paise coin ( Athanni ) rarely in circulation.

value technical parameters description year
diameter Dimensions composition Shape front Turning back First coinage Last coinage
50 paise 19 mm 3.79 g Ferritic stainless steel Circular Emblem of india Worth, the word "PAISE" in English and Hindi, floral motif and year of issue 2011 2016
50 paise 22 mm 3.79 g Ferritic stainless steel Circular Emblem of India Worth, hand in fist 2008