The Indian Rupee has a history of more than 2,500 years in India. The term “rupee” comes from the Sanskrit word Rupya, meaning a silver coin. A standardized rupee coin was introduced in the 16th century by Sher Shah Suri, and it continued to be widely used during the Mughal Empire.

During British rule, the rupee became the official currency of colonial India and paper money was formally introduced. After Indian Independence, the rupee remained the national currency and in 1957 India adopted a decimal system (1 rupee = 100 paise). Today it is issued and regulated by the Reserve Bank of India.