Indian Rupee Currency
The Currency in India is managed by Department in RBI; it also issues note and coins. RBI prints currency notes and mint coins in four printing presses and mints located in Mumbai, Alipore (Kolkata), Saifabad (Hyderabad), Cherlapally (Hyderabad) and Noida (UP) and distributes them through its network of 18 offices.
The Department also checks or tracks on notes in circulation and the stocks at RBI offices and currency chests. The Reserve Bank issues banknotes in the denominations of Rs.5, Rs.10, Rs.20, Rs.50, Rs.100, Rs.500 and Rs.1000. Government of India mints coin under the denominations of 25 paise, 50 paise, one rupee, two rupees, five rupees and ten rupees.
Reserve Bank of India has decided to introduce plastic banknotes on a trial basis in September 2009. Initially, 1 billion pieces of Rs. 10 denomination notes will be introduced whose life will be 4 times the regular Indian bank notes and be difficult to counterfeit.
Characteristics of Currency Notes
To counter fake currency notes following security check must be taken care of:
- White side panel of notes has Mahatma Gandhi watermark.
- All notes have a silver security band with inscriptions visible when held against light which reads ‘Bharat’ in Hindi and ‘RBI’ in English.
- Notes higher than Rupees 20 display the note's denominational value in numerals when held horizontally at eye level called latent image.
- Numeral denominational value is visible under magnifying glass between security thread and latent image.
- Number panels glow under ultra-violet light.
- Notes of Rs. 500 and Rs. 1000 have their numerals printed in optically variable ink; this is why number appears green when note is held flat but changes to blue when viewed at angle.
- Floral design printed on the front and the back of the note coincides and perfectly overlap each other when viewed against light.
Indian Rupee is written as INR in exchange terms and its value is determined by market exchange rate with respect to the US dollar. INR is not hooked to a specific foreign currency at a particular exchange rate. RBI get involves through active trading in currency markets to bring low volatility in the exchange rates.
Rupee convertibility is a series of customs regulations restricting the import and export of rupees. Indian nationals can import and export up to 5000 rupees at a time.
There is no restriction on currency conversion that would hamper buying or selling foreign exchange on the current account. On the capital account, foreign institutional investors under quantitative restrictions have convertibility to bring money in and out of the country and buy securities.
Possessing 500 and 1000 rupee notes in Nepal is prohibited.
Exchange rate of INR (as per 05th Oct. 2009)
1 US Dollar= INR 45.2
1 AUD= INR 41.60
1 Euro= INR 69.60
1 Pound (GBP)= INR 76.20