INR Full Form: What is the Full Form of INR?:-
What is INR Full Form?
The full form of INR is Indian Rupees and is the official currency of India.
Initially, the symbol of INR was Rs. or Re. before July 15th, 2010.
The Reserve Bank of India (RBI) takes care of the issuance of currency in the country.
- The INR derived its name from the word RUPIYA.
- The term “rupiya” was first introduced in the 16th century by Sher Shah Suri.
- Rupiya is a Sanskrit term. It means produced silver or shaped silver.
- During earlier times, Indian coins were made of silver, and each coin would weigh 11.66 grams.
- The smallest denomination of the Rupiya was the paisa.
- Rupiya and paisa were used through centuries and even today, we refer to money as rupee or paisa.
The INR’s History:
- The Anna was introduced during the first decade of independence.
- Since 1950, each Anna has had an Ashoka Lion engraved on it.
- During that time, 1 rupee equaled 16 annas, and each anna was further split into 4 paisas or 12 pies.
- As years passed, India kept experimenting with different denominations and, conclusively today, 1 rupee equals 100 paise.
- Two consecutive wars took place:-
- China, in 1962.
- Pakistan in 1965.
- After the wars, India’s financial stability went haywire, which led the rupee to fall to RS. 7.57 Per US $.
- Earlier, the rupee was linked to the British Pound, which was devalued in 1971, and later it was directly linked to the US $.
- Further, the rupee was devalued to RS. 12 per dollar in 1985, which led to a currency shortage in the country.
- To overcome the currency shortage, the Indian government, along with the RBI, increased the cash supply and prompted the expansion.
- In 1947, when the country got independence, there were no outside borrowings on the balance sheet of the country, and hence at that time, the Indian rupee had an equal value to the US $.
- With the passage of time, the Indian rupee drastically went into two rounds of depreciation and reached its lowest of RS. 68.75 Against the US $ 1 in August 2013.
- Due to this, the government has taken the initiative to eliminate black money and promote cashless transactions.
Various Denominations of INR:-
The entire denomination of our INR is classified into two categories:-
- Modern Coins; and
- Bank Notes.
- The RBI has issued rupee coins in denominations like 50 paisa coin, 1 rupee coin, 2 rupee coins, 5 rupee coins, and 10 rupee coins.
- The Ashoka Emblem appears on the majority of the coins.
- Coins that are worth 50 paise are called “Small Coins” and coins over and above 1 rupee are known as rupee coins.
- The RBI has issued banknotes in denominations like 1 rupee note, 2 rupees note, 5 rupees note, 10 rupees note, 20 rupees note, 50 rupees note, 100 rupees note, 200 rupees note, 500 rupees note, 1000 rupees note, and 2000 rupees note.
- All the above-note denominations have a Mahatma Gandhi portrait on the opposite side, while the 1 rupee note has a picture of the rupee coin.
- On the other hand, rupee denominations are printed in 15 languages.
- After demonetization in 2016, the RBI stopped the issuance of 1000 rupee notes.
- All the bank notes have got different colors and different images.
- The details are given below:-
|1 rupee||Pink||Sagar Samrat Oil Rig|
|2 rupees||Magenta||King George|
|5 rupees||Green||Mahatma Gandhi|
|10 rupees||Chocolate Brown||Konark Sun Temple|
|20 rupees||Yellowish Green||Ellora Caves|
|50 rupees||Cyan||Hampi with Chariot|
|100 rupees||Lavender||Rani ka Vav|
|200 rupees||Bright Yellow||Sanchi Stupa|
|500 rupees||Stone Grey||Red Fort|
Issuance of the INR:-
- The RBI issues INR.
- This means that the entire regulation and control of the INR is looked after by the Reserve Bank of India.
- The RBI has 20 offices that perform the functions of managing the currency notes.
- We currently have over 4422 currency chests and a 3784 small coin department that is authorized by the RBI to handle currency notes and coins.
- Bank Notes are issued by the RBI, whereas coins are issued by the government of India and are circulated by the RBI.
- All bank notes are issued under the Minimum Reserve System, which the RBI introduced in 1956.
- As per this norm, the RBI must maintain a gold and foreign exchange reserve of RS. 200 crore, out of which RS. 115 crore should be in the form of gold bullion.
How can we analyze if the currency note we have is original?
- Our country is a cash-based economy, which has resulted in fake currency being circulated due to the increase in illegal behavior.
- The following features have been included by RBI to avoid the duplication of currency notes in the country:-
Insert Security Thread:-
This is the greenish line that appears on the left side of Mahatma Gandhi’s portrait.
This is the light-shaded region that has the shadow of Mahatma Gandhi.
This is between the security thread and Mahatma Gandhi’s portrait.
It has the word RBI in RS. 10 and RS. 20 notes and they also contain the denominational value of the notes in the micro-letters that can be viewed with the help of a magnifying glass.
This special feature is for visually impaired individuals and has raised print that can be sensed with a soft touch.
The following are printed in intaglio:-
- The Ashoka Pillar emblem is on the left.
- The RBI seal.
- A Portrait of Mahatma Gandhi.
- RBI governor’s signature.
What is demonetization and what was its objective?
- Prime Minister Narendra Modi on November 8, 2016, at 8 p.m. announced demonetization to fulfill four basic objectives of checking terrorism funding by Pakistan, the printing of counterfeit money, corruption, and black money.
- With an objective to avoid all the above four issues, demonetization was announced and, thereby, the Mahatma Gandhi series of 500 rupees and 1000 rupees banknotes were refused to be used as an exchange mechanism.
- Later, the new 500 rupees note and 2000 rupees note was introduced in the market with new enhanced security features.
Interesting facts about the Indian rupee:
- There were 5000 rupees and 10,000 rupees notes in circulation between 1954 and 1978.
- The entire cost of making an RS. 10 note is RS. 6.10.
- Zero rupee notes were issued by the 5th Pillar Non-Profit Organization (NGO) to fight corruption.
- If you have any torn notes, you can simply exchange them at your nearest bank branch.
- The denominations are always written in English and Hindi on the face of the rupee notes along with the RBI governor’s signature.
Where are the currency coins and banknotes minted?
- There are four currency presses that produce currency coins and banknotes.
- The government of India owns two of them and operates under the Security Printing and Minting Corporation of India (SPMCL).
- The RBI owns the other two and is operating through its wholly-owned subsidiary named Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL).
- According to Section 39 of the RBI Act, only the RBI has the authority to issue and circulate coins.
Role of RBI in currency management:-
- The RBI issues bank notes as per Section 25 of the RBI Act.
- As per the section, the material, form, and design of the bank notes are approved by the Central Government based on the recommendations of the Central Board of RBI.
- The RBI, as per the clean note policy, provides clean and crisp notes to the public.
- As per the clean note policy, the RBI will examine all the notes received back after circulation and then destroy all the solid and marred notes, and further reissue notes that are fit for circulation.
- The entire responsibility of designing and mining is with the Central Government of India, where the RBI will only distribute the coins that are supplied.
With this blog, we hope that you are clear about INR and how the whole cycle of money is formulated along with the security menu and fake currency constraints.
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