economy : Are Paise still relevant to Indian currency?
Now that the financial norms are rounding off even the Rupees to five if not ten, do we need to carry on with the burden of Paise? Technically a Rupee has 100 Paise. Why not to lust say 0.5 Rs. if need be.
Answer by Aditya Mvr:
I understood this question in a little different way… This answer may not be in the point of view the questioneer.
Paisa is very much relevant – now and even in far future.
For instance, banks and other financial institutions make huge margins by selling/buying dollars even with difference in paisa.
If Paisa has no relevance (ie. Equivalent to having no value), FX traders should not mind selling a Dollar at INR 61.10 when it is being traded at 61.40 – this certainly is not the case.
Also, there are many companies whose stocks are being traded at less than 1 rupee. Had Paisa has no relevance, they all should be rounded off to 0 or 1 which is not the case. Traders make humoungous profits ( and losses too) with these penny stocks.
In pricing commodities and products too, paisa has huge relevance.
I understand the question meant asking if there is any need/relevance to carry paisa when we get almost nothing for such that low amount. In that sense, paisa may have lost relevance in terms of making payments physically to buy a product or service, but the above examples, and the likes, show that value of a paisa can't be underestimated!