The currency of India is the Indian Rupee, written with the ISO code INR and the symbol ₹. It is issued by the Reserve Bank of India and used by more than 1.4 billion people, making it one of the most widely circulated currencies in the world by population. As of 2026, one US dollar is worth roughly 83 rupees, though the exchange rate moves daily with global markets.
The Indian Rupee at a Glance
The rupee is divided into 100 smaller units called paise (singular: paisa), although inflation has made paise coins largely obsolete in everyday transactions. Today most purchases are settled in whole rupees. The key facts you need to recognise the currency are:
- Official name: Indian Rupee
- ISO code: INR
- Symbol: ₹
- Subunit: Paisa (one rupee = 100 paise)
- Issuing authority: Reserve Bank of India (RBI), founded 1935 and headquartered in Mumbai
The distinctive ₹ symbol is relatively new. It was chosen in 2010 after a nationwide design competition, blending the Devanagari letter "Ra" with the Latin "R." Two horizontal strokes near the top echo the tricolour of the Indian flag and also suggest an equals sign, hinting at a balanced economy. Before 2010, the rupee was simply abbreviated as "Rs."
Banknotes and Coins in Circulation
Indian banknotes come in a colourful range of denominations, each a different hue to help users tell them apart quickly:
- ₹500 – stone grey, the largest note in circulation
- ₹200 – bright orange
- ₹100 – lavender, one of the most common notes
- ₹50 – fluorescent blue
- ₹20 – greenish-yellow
- ₹10 – chocolate brown
Every banknote carries a portrait of Mahatma Gandhi on the front, part of the long-running "Mahatma Gandhi Series." The reverse sides celebrate Indian heritage and achievement, featuring sites and milestones such as the Rani ki Vav stepwell in Gujarat and the Mangalyaan Mars Orbiter Mission. A practical touch for such a multilingual nation: each note prints its value in many of India's official languages, with up to 17 languages appearing across the panel on the reverse. Coins are minted in denominations of ₹1, ₹2, ₹5, ₹10 and ₹20, with the ₹1 coin made of stainless steel.
A Currency With Ancient Roots
The word "rupee" comes from the Sanskrit rupya, meaning wrought or stamped silver. Silver punch-marked coins circulated across the subcontinent as far back as the 6th century BCE, but the rupee as a standardised unit is usually credited to Sher Shah Suri, who issued a silver coin called the rupiya in the 16th century. The British East India Company and later the British Raj continued the rupee system through the colonial era.
After India gained independence in 1947, the country modernised its money. In 1957 the rupee was decimalised, replacing the older system of annas and pice with the clean 100-paise structure used today. More recently, in November 2016, the government suddenly withdrew the ₹500 and ₹1,000 notes in a sweeping move known as demonetisation. It removed roughly 86 percent of the cash in circulation overnight, aiming to curb counterfeiting and untaxed "black money," and ranks among the largest currency reforms in modern history.
Cash, Cards and the UPI Revolution
While cash still matters, India has become a global leader in digital payments. The Unified Payments Interface (UPI), launched in 2016, lets people transfer money instantly between bank accounts using a smartphone and a QR code. UPI now processes billions of transactions every month, and even small street vendors and tea stalls accept it. Despite this, physical rupees remain essential in rural areas, at local markets and for small everyday purchases. For more about the country behind this fast-changing economy, see our india country guide.
Tips for Travellers Using Rupees
If you are visiting India, a few habits make handling money easier:
- Carry a mix of small notes — vendors often cannot break a ₹500 note for a tiny purchase.
- ATMs are plentiful in cities and towns, but stock up on cash before heading to remote regions.
- Importing or exporting large amounts of Indian rupees is restricted, so exchange money inside the country or withdraw from ATMs.
- Bargaining is normal in markets and with auto-rickshaws, though fixed prices apply in shops and malls.
- Consider setting up a UPI-linked app if you have an Indian bank account, as it is the fastest way to pay.
Frequently Asked Questions
What is the symbol for the Indian Rupee?
The symbol is ₹, officially adopted in 2010. It merges the Devanagari "Ra" with the Latin "R" and includes two horizontal lines inspired by the Indian national flag. Before this, the rupee was written as "Rs."
How many rupees equal one US dollar?
As of 2026, one US dollar is worth approximately 83 Indian rupees. Exchange rates fluctuate daily based on global currency markets, so check a live rate before exchanging money.
Who controls and issues the Indian Rupee?
The Reserve Bank of India (RBI), the nation's central bank, issues banknotes and manages monetary policy. It was established in 1935 and is based in Mumbai. Coins are minted under the authority of the Government of India.
Is India a cash or digital economy?
It is increasingly both. India runs one of the world's largest digital payment networks through UPI, yet cash is still widely used, especially in rural areas and for small daily transactions.