The Indian currency will be joining the elite club of the U.S. dollar, the European euro, the British pound sterling and the Japanese yen. The growth story of India is intact and many would be interested in correlating the new symbol with its economic growth and ambition to become an economic super power.
This new symbol is also considered as a step towards internationalisation of Indian rupee. While the U.S. dollar, the British pound, the euro and the Japanese yen are widely traded currencies, Indian rupee is only partially convertible. With a new symbol, the issue of full capital account convertibility would be revived again.
Convertible currencies are defined as currencies that are readily bought, sold and converted without the permission from a central bank or government entity. The Indian rupee is only partially convertible as the central bank controls the international investments flowing in and out of the country.
Union Finance Minister Pranab Mukherjee had stated in his last budget presentation that:- We intend to formalise a symbol for the Indian rupee, which reflects and captures the Indian ethos and culture.This would distinguish the Indian currency from its neighbouring countries Pakistan, Nepal, Sri Lanka and Indonesia similarly known rupee or rupiah.