Major Currencies Questions Medium
The history of the Indian rupee dates back to ancient times. The first known currency in India was the silver punch-marked coins, which were used during the Mauryan Empire around the 6th century BCE. Over the centuries, various dynasties and empires issued their own coins, including gold, silver, and copper coins.
During the medieval period, the Delhi Sultanate and the Mughal Empire introduced their own currency systems. The Mughal rupee, introduced by Emperor Sher Shah Suri in the 16th century, became the precursor to the modern Indian rupee. The term "rupee" is derived from the Sanskrit word "rupya," which means "silver."
With the arrival of European colonial powers in India, the Indian currency system underwent significant changes. The British East India Company introduced the "Company Rupee" in the early 17th century, which was later replaced by the "British Indian Rupee" in 1835. The British Indian Rupee became the official currency of British India and continued to be used even after India gained independence in 1947.
After independence, the Indian government established the Reserve Bank of India (RBI) in 1935, which became the central bank responsible for issuing and managing the Indian rupee. In 1950, the Indian rupee was decimalized, and the new currency system was introduced, with 1 rupee divided into 100 paise.
Over the years, the Indian rupee has faced various challenges, including inflation, devaluation, and economic reforms. In 1991, India implemented economic liberalization measures, which led to the introduction of the "New Indian Rupee" in 1996. The new currency had enhanced security features and a different design.
Today, the Indian rupee is one of the major currencies in the world and is issued and regulated by the Reserve Bank of India. It is widely used in India for daily transactions and is also accepted in some neighboring countries. The Indian rupee's exchange rate is determined by various factors, including market forces, inflation, and government policies.