Tamil Nadu changed the symbol of rupee

Why in News?

The Tamil Nadu government has replaced the official currency symbol (₹) by adopting the Tamil letter “ரூ (Ru)” in its 2025-26 state budget. This decision has been taken as part of efforts to promote the Tamil language and strengthen the state’s cultural identity.

Key Points Related to symbol of rupee (₹) of India

• Introduction: The official symbol (₹) for the Indian currency was adopted on 15 July 2010. Before this, the Indian Rupee was written as “Rs” or “INR,” which often caused confusion with other currencies like the Pakistani and Sri Lankan Rupees. To resolve this issue and give the Rupee a unique identity, the Indian government organized a national competition, through which the current symbol was selected.
• Design: The Rupee symbol (₹) is a combination of the Devanagari letter “र” (Ra) and the Roman letter “R”. It was designed by Dr. D. Udaya Kumar, a professor at IIT Guwahati.
• Features:
  • The symbol integrates both Devanagari and Roman scripts, representing India’s cultural and global identity.
  • The two parallel horizontal lines on top symbolize the Indian tricolor (saffron and green) and also indicate the stability of the Indian economy.
  • This design provides a distinct cultural and economic identity to the Indian Rupee.
  • The symbol is included in Unicode (U+20B9), making it easily usable on computers, smartphones, and digital platforms.
  • After adopting the Rupee symbol, India became the fifth country to have a unique currency symbol, following the US Dollar ($), British Pound (£), Japanese Yen (¥), and Euro (€).
• History and Development: On 5 March 2009, the Government of India announced a national competition for designing the Rupee symbol. Over 3,000 entries were received, from which five designs were shortlisted. Finally, on 15 July 2010, the Cabinet selected Udaya Kumar’s design, and from 2011, the Rupee symbol started appearing on Indian banknotes and coins.

The Journey of the Rupee: From Silver Coins to Modern Currency

• Ancient Origins: The term “Rupee” originates from the Sanskrit word “Rupyah”, meaning silver, and “Rupyakam,” meaning a silver coin. In ancient India, silver coins were commonly used for trade, which later influenced the naming of India’s currency as “Rupee,” a name that continues today.
• Mughal Era: Between 1540 and 1545, Sher Shah Suri introduced a standardized silver coin, weighing 178 grains (11.53 grams), which is considered the foundation of the modern Rupee system. Alongside, he introduced the gold “Mohur” and copper “Dam”. The Mughal Empire further strengthened this tri-metallic currency system by standardizing coinage.
• British Rule: During British rule, the Rupee remained the primary currency, but its standards were modified. The British-era Rupee weighed 11.66 grams and contained 91.7% pure silver. By the late 19th century, the Rupee was valued at 1 Shilling 4 Pence in the British monetary system.
• Modern Rupee: After India’s independence, the currency system was modernized. In 1957. Earlier, 1 Rupee was divided into 16 Annas, 64 Paise, or 192 Pies. However, after 1957, it was restructured into 100 Paise, initially called “Naya Paisa”, later simplified to “Paisa”.
• Today, the Reserve Bank of India (RBI) is responsible for issuing currency notes and coins in India. It also regulates monetary policy and ensures the security of the Indian Rupee.

Can a State Government Change the symbol of rupee?

The Indian Rupee symbol (₹) was officially adopted by the central government in 2010, but it has not been given the status of a National Emblem. Therefore, it does not fall under any specific law that explicitly regulates its adoption or modification.

• The Indian Constitution does not contain any clear provision that either permits or prohibits a state government from altering the Rupee symbol. However, currency-related matters, including symbols associated with it, typically fall under the jurisdiction of the central government, as monetary policies are formulated at the national level and regulated by the Reserve Bank of India (RBI).
• National symbols in India receive special protection under the Emblems and Names (Prevention of Improper Use) Act, 1950, and the State Emblem of India (Prohibition of Improper Use) Act, 2005. These laws prohibit any unauthorized changes or misuse of official national symbols, but the Rupee symbol is not currently classified as a National Emblem.
• However, if the central government decides to amend the law and declare the Rupee symbol as a National Emblem, then state governments will no longer have the authority to modify it.

Possible Legal Action for Modifying the symbol of rupee

Since the Rupee symbol is not a National Emblem, proving a direct legal violation would be difficult. However, some constitutional and statutory provisions may be used to challenge any state government’s decision to modify it.

• Exclusive Power of the Union Government: According to the Seventh Schedule of the Indian Constitution, the Union List (Entry 36: Currency and Coinage & Entry 38: Reserve Bank of India) grants exclusive authority over currency matters to the central government. Therefore, states have no legal authority to modify currency symbols, and the central government can declare such changes unconstitutional.
• Violation of the Indian Acts: The Indian Coinage Act, 1906, and the Reserve Bank of India Act, 1934, govern the design and authenticity of Indian currency. Since the Rupee symbol was officially notified by the central government, any modification by a state government could be considered a violation of these laws.
• Constitutional Intervention: 
  • Under Article 256 and Article 257 of the Constitution, the central government can direct a state government to comply with Union laws. If a state refuses, the central government can take corrective action. The central government may consider invoking Article 356 (President’s Rule), although this would only be a last resort.
  • The central government provides financial assistance to states under Article 282 of the Constitution. If a state government continues with a controversial decision, the central government may reconsider financial aid or grants.

Broader Implications of Changing the symbol of rupee

• Impact on Standardization: The symbol of a national currency is universally recognized to maintain consistency in economic transactions and administrative processes. Changing the Rupee symbol at the state level is not just a symbolic act but a challenge to the standardization of national symbols.
• Federal Structure & Linguistic Identity: The Indian Constitution allows states to preserve their linguistic and cultural identities, but altering national symbols may disrupt the federal structure. If other linguistically strong states follow suit, it could create regional disparities and conflicts over national representation.
• Economic Challenges: The standardized Rupee symbol (₹) is used in official documents, banking systems, and international financial transactions. If different states introduce their own currency symbols, it could lead to confusion, inefficiencies, and harm India’s global financial identity.

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