The countries of Nepal and Bhutan, which lie in close proximity to India, accept the Indian Rupee as legal tender. The value of both the Nepalese Rupee and the Bhutanese ngultrum is based on the strength of the Indian Rupee.
The official currency of India is the Indian Rupee, which is created and controlled by the nation's primary monetary organization, the Reserve Bank of India. The Rupee can be broken down into smaller amounts, called paise. Though each Rupee consists of 100 paise, the only legally accepted coin in circulation is the 50-paise coin.
Dating back as far as the sixth century B.C., India has used various types of coins as currency. The first use of the Rupee as an official currency is believed to be by Sher Shah Suri during the early part of the 16th century. At that time, the value of a single Rupee was approximately 40 pieces of copper, which is where the subdivision of paise is believed to originate. After India achieved independence in 1947, the country made the Rupee the official national currency, replacing numerous regional denominations and currencies.
The value of the Rupee has been tied to both the British Pound and the U.S. Dollar at various points, but it was devalued to provide a greater level of financial independence.