INR full form in banking|| History, INR against USD, security, exchange rate!!


INR full form in banking

INR full form in banking: Indian Rupee.


The INR is the short form for the Indian currency - Rupee. It is the official short form, used all across the country. However, one rupee equals to one hundred paise. The Reserve Bank of India is the bank that officially announced this currency. RBI have issued it officially under the Reserve Bank of India Act, 1934. Moreover, RBI is the prime bank for the Republic of India. Coming to its worth, as of twenty nineteen, a rupee possesses the lowest value. In modern India, a one rupee coin is the smallest existing denomination of money. However, Indians also had the use of smaller currencies. From 5 paise to 50 paise. But nowadays, one rupee coin has no precedent.


According to Wikipedia, 6th century BCE is the date Indian currency existed. However, it was the time, Ancient India began to forward its steps towards modernisation. After, the Chinese population, Indians are the one, who has introduced the flow of currency and coins. Ancient India used to be one of the richest civilisations. Moreover, the currency was introduced after the barter system. The coins used to be made of silver, copper, and even gold. Gold was used in making currency! However, the Mauryan emperor Chandragupta, have introduced the concept of currency. The rupee came from the name of "rupiya". However, knowing the INR full form in banking is worth it.



INR CALCULATIONS AGAINST USD:


  • 1 USD = 70 rupees.

The INR has a lesser worth than the US dollar. However, one USD equals to 70 rupees. But the value is not fixed. It keeps on changing from time to time. The exchange value is not even decided on any particular organisation. The exchange rate keeps on fluctuating. And it completely depends on the in-country productions. The rate keeps on changing according to the demand and product availability. Furthermore, there are a ton of factors that affects the fixing of the exchange rate.



RBI LEFT FIXING THE INR - USD EXCHANGE RATE:


It is a fact that no organisation can fix the exchange rate. Even the RBI left it, after becoming aware of the reality. The exchange rate of INR is not fixed. The reasons for the same are listed below:


1. Inflation: The situation when the price of the commodity rises is called inflation. Any country faces a situation when the demand rises, but the production goes down. However, inflation is also caused when the population has a weird demand. Weird in the sense, the population has a huge demand for a product that is rare. That comes in a limited amount in the market. However, inflation decreases the previous worth of any currency.


Inflation = Decreased currency worth.


2. Interest rate: It is often referred to as the repo rate. The interest rate in India is fixed. RBI has fixed it to only six per cent. The repo rate determines the rate. At which, the RBI lends money to several different banks. In case the repo rate increases. However, the worth of the currency will also increase.

Increased Interest rate = Increased currency worth.



THE OTHER TWO OF THEM:


3. Greater imports: Countries can't survive without imports and exports. In case a nation's account is running short on money. It has surely lost loads of money in imports. And the same time is not capable of earning anything from its exports. Such a case gives rise to the increase in currency's worth.


Greater imports = Increased currency worth.


4. A ton of debts: When a country carries a ton of public debts. It will face hardships paying off the debt. In such a case, it has to either print new notes. Or have to sell its products at lower services to the foreign countries. Since the later is not profitable. Moreover, the country's population will lose trust. Regarding the paying back of the debts back to the investors. In such a case the currency worth will be decreased due to inflation.


A ton of debt = Decreased currency worth.



IS INR CURRENCY SECURE?


Coming to the security of the Indian Currency. It is a kind of national duty to keep its currency secure. As the amount of frauds done in today's date just touches the sky. There are millions of frauds regarding false currency circulation. To prevent it completely, the Indian government has taken major steps.



Some of which are listed below:

  • Insertion of a security thread on the paper note.
  • Making a unique identification mark with the sum denoted by the paper note.
  • Use of Fluorescence.
  • The use of watermark.
  • Use of optical varying ink for printing the sum and the photo of the father of the nation.

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