About the Indian Rupee
The Indian rupee is the currency of India, issued by the Reserve Bank of India. The rupee floats, but the Reserve Bank buys and sells dollars to smooth sharp moves, and India holds some of the largest foreign exchange reserves in the world.
India's capital account is only partly open. Foreign investment in shares and bonds is allowed within limits, but the rupee cannot be freely traded outside India, so many offshore investors hedge it with non-deliverable forwards that settle in dollars.
The Reserve Bank targets 4% inflation, with a band of 2% to 6%, and its Monetary Policy Committee meets six times a year. India is one of the world's largest recipients of remittances from abroad.
Paying in INR
- IFSC code
- India does not use IBANs. A rupee payment needs the account number and the branch's 11-character IFSC code, together with the bank's SWIFT/BIC code for payments from abroad.
- Purpose codes
- Every payment into India needs a purpose code set by the Reserve Bank, such as payment for software exports or family maintenance. The code decides how the payment is treated, so choose the one that matches the real reason for the payment.
- Export proceeds
- Indian exporters need a foreign inward remittance certificate from their bank as proof of payment, so give the invoice number and purpose clearly in the payment details.
- Domestic clearing
- Inside India, rupees move through NEFT and RTGS, both of which run 24 hours a day, through IMPS for instant transfers, and through UPI for everyday payments.
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