BANKING AFFAIRS

Detailed explanation-1: -Detailed Solution. The correct answer is 1975. India decided to delink the rupee from the pound sterling and linked it to a “basket of currencies” in 1975.

Detailed explanation-2: -The Indian Rupee was devalued in three instances. The Indian rupee was devalued for the first time in 1949, later it was devalued in 1966 and finally the Indian rupee was devalued in 1991. In 1991, the Indian rupee was devalued in two steps, first on 1st July and again on 3rd July.

Detailed explanation-3: -The Reserve Bank of India, is the custodian of the country’s foreign exchange reserves and is vested with the responsibility of managing their investment. The legal provisions governing management of foreign exchange reserves are laid down in the Reserve Bank of India Act, 1934.

Detailed explanation-4: -Currency depreciation is a fall in the value of a currency in terms of its exchange rate versus other currencies. Currency depreciation can occur due to factors such as economic fundamentals, interest rate differentials, political instability, or risk aversion among investors.