History of INR
The earliest silver coin was introduced in 1540 by Sher Shah Suri whereas the earliest rupee made of paper was issued in 1770 by the Bank of Hindustan, General Bank of Bengal and Bihar and Bengal Bank. However, the RBI that regulates the INR was established in 1935, and the first note issued was the Rs. 5. Ever since then, the currency has evolved.
Due to the British Parliament Act of 1861, the British introduced a series of notes in India. This included Rs 10, Rs 20, Rs 50, Rs 100, and Rs 1000. These notes were called the Victoria Portrait series. However, due to forgeries, these notes were withdrawn in 1867. Following this, in 1923, notes containing the portrait of George V were introduced. These notes continued until the establishment of the RBI.
In 1947, when India became independent, the value of the 1 INR was the same as 1 USD. There are usually two arguments to this situation. The most common one is that, in 1947, before the independence of India from the British, as the value of 1 Pound was more, the value of INR was also more. During that time, 1 Pound was about 13.37 Indian Rupees, and so the value of 1 USD was about 4.16 Indian Rupees.
Another reason is that, back then in 1947, there was no proper metric system and because of this, all currencies had the same rate. However, in the official record, the value of 1 INR was never equal to 1 USD. The value of INR has reduced because of several reasons. Some of the reasons for the recent denomination of 1 INR include multiple economic crises, World Bank loans, etc.
Key Points About The INR
- The INR, also known as Rupees, derived its name from the 16th-century silver coin “rupiya”.
- The Indian economy was primarily cash-based causing the circulation of forged notes by criminals.
- To influence successful exchange rates, the RBI works the USD/INR currency market.
- Indian notes of Rs. 500 and Rs. 1000 were demonetized to curb the underground economy by the Government of India.
- Some of the micro-printed texts on the new INR series include “Bharata” and “ RBI”.
As a citizen of India, it is the responsibility of everyone to know about the INR. Like the full form of INR, this article has more such information. You can use this to improve your knowledge or when you are preparing for the banking examination.
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