When was the Indian Rupee de-linked from the Pound Sterling?
- A.1975
- B.1947
- C.1982
- D.1963
Correct answer
Explanation
The correct answer is A, 1975. The rupee was tied to the pound sterling from colonial times and stayed pegged to it after independence. In 1975 the link was cut and the rupee was tied instead to a basket of currencies of India's major trading partners, with the Reserve Bank fixing the daily rate. The step was taken because the pound itself had become unstable after the breakdown of the fixed exchange rate system in the early 1970s.
Option B, 1947, is independence, when the sterling link was retained. Option D, 1963, belongs to no exchange rate change; the two devaluations students confuse it with are 1949 and 1966. Option C, 1982, is the year NABARD and the EXIM Bank were set up, not an exchange rate landmark. The basket peg lasted until the reforms of 1991 to 1993, when India moved to a market determined exchange rate.
Read the full article: History of Banking in India: Nationalisation, RBI and PYQs
Practice Questions
View allIn which of the following years did the fourteen major Indian scheduled commercial banks get nationalised in India?
- A.1969
- B.1970
- C.1972
- D.1950
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On 19 July 1969 the Government of India issued an ordinance taking over the fourteen largest Indian scheduled commercial banks, those whose deposits stood at ₹50 crore or more.
Read the full explanation →Which among the following is the oldest joint stock bank in India?
- A.Allahabad Bank
- B.Bank of Baroda
- C.Yes Bank
- D.Punjab National Bank
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It was founded in 1865 and is remembered as the oldest joint stock bank in India, a joint stock bank being one owned by shareholders rather than by a partnership of agency houses.
Read the full explanation →The Reserve Bank of India was fully nationalised and owned by the Government of India in which of the following years?
- A.1947
- B.1948
- C.1949
- D.1950
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The Reserve Bank opened in 1935 as a shareholders' bank with privately held share capital.
Read the full explanation →Which commission recommended the establishment of the Reserve Bank of India?
- A.Narasimham Committee
- B.Hilton Young Commission
- C.Chelliah Committee
- D.Sivaraman Committee
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Formally the Royal Commission on Indian Currency and Finance, it reported in 1926 that the control of currency and of credit should not be split between the Government and the Imperial Bank but placed in one central bank.
Read the full explanation →The Imperial Bank of India was renamed the State Bank of India in which year?
- A.1935
- B.1949
- C.1955
- D.1959
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The All India Rural Credit Survey Committee under A. D. Gorwala reported that rural credit needed a bank with branches across the country and in state partnership.
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