The Indian rupee is the name of the currency unit of the country India. The currency is issued by the Indian government and the country’s central bank. The Indian rupee’s ISO 4217 code is INR. The currency is abbreviated with the terms iR, Rs and Re.
History of the Indian Currency
The Indian currency unit can look back on a long history, which is closely linked to the history of the country.
In the geographical area in which today’s India is located, the first cultures to introduce a monetary system existed more than a thousand years ago. These first currencies were used between the 4th and 6th centuries to make trading easier.
The respective rulers gave the coins a specific appearance and changing names. Hence, these first Indian currencies are merely the forerunner of today’s Indian rupee.
This Indian rupee was first introduced by the ruler Afghan Sher Shah Suri (1540-1545). Khan brought out a silver coin in 1526, which was initially called “Rupiya”. From 1612 this coin was called “rupee”. In the coming decades, this silver coin continued to use the previous means of payment.
However, it was not until the 18th century that the first paper money was issued. At that time India was a colony of the British Empire. The Indian rupee remained the country’s currency even during colonial times. It was even used as a means of payment in other British colonies.
During this period of colonial rule, the Indian rupee underwent a dramatic devaluation. The currency was a silver coin. When a large silver deposit was discovered in the USA in 1873, the resulting surplus of silver led to rapid inflation and the economic crisis of the Indian colony. Therefore, the coin was initially devalued. Later, the then Indian rupee was linked to the gold standard.
When India gained independence in 1947, the Indian rupee was retained as the unit of currency. At that time, the country was primarily oriented towards the western democracies. Therefore, India leaned economically on the USA.
From 1966, the Indian rupee was therefore pegged to the American dollar. Since then, the rupee has been a largely stable currency, although it has not been spared the economic crises of the past decades.
Exchange into the Indian rupee
In principle, the exchange of euros into Indian rupees is possible in Germany. However, this exchange often incurs high fees. In India, currency exchange is usually much cheaper. Because of the lower exchange rates, travelers there receive more rupee for the euro.
A quick exchange is also offered by the major banks in India. ATMs mostly only exist in the big cities. It is therefore advisable for travelers to exchange the money they need immediately upon arrival.