rupee
rupee, monetary unit of Muslim India from the 16th century and the modern monetary unit of India and Pakistan. The modern unit is divided into 100 paisa in India and Pakistan. The name derives from the Sanskrit rupya (“silver”). The rupee is also the name of the monetary unit used in Mauritius, Nepal, and Seychelles.
In the late 16th century the rulers of the Mughal dynasty of central and northern India established the silver rupee, which was divided into 16 annas. In 1671 the British East India Company minted coins copied from local types, using the rupee as the basic unit of account. The value of the rupee varied from region to region, however, depending on the minter, and not until 1835 was the rupee made uniform by law.
After independence in 1947, India retained the rupee and decimalized it in 1955. Pakistan began creating its independent money in 1948 and adopted the decimal system in 1961. Ceylon (now Sri Lanka) in 1872 adopted a decimal system based on the Indian rupee; it adopted an autonomous monetary system in 1929 and an independent system in 1949.
The Reserve Bank of India has the sole authority to issue banknotes and coins in that country. Banknotes, all of which are adorned on the obverse with images of Mohandas Gandhi (1869–1948), the leader of the 20th-century movement against British colonization, are issued in denominations ranging from 10 to 1,000 rupees. Coins are issued in denominations of 25 and 50 paisa, and there are also 1-, 2-, and 5-rupee coins.
The State Bank of Pakistan exclusively issues banknotes and coins in Pakistan. Banknotes range from 5 to 5,000 rupees. The obverse of each note contains a picture of Mohammed Ali Jinnah, the founder of Pakistan. Coins circulate in values of 1, 2, and 5 rupees, though higher-value commemorative coins are also legal tender.