In 1991, the Indian rupee was devalued in how many steps?

The correct answer is Twice.

Key Points

• The Indian rupee had two rounds of devaluation in 1991, beginning on July 1 and ending on July 3.
• Indian Rupee was devalued for the third time in 1991.
  • The devaluation procedure in 1991 was carried out in two steps on July 1 and July 3.
  • The year 1991 is often cited as the year of economic reform in India.

Confusion Points

•  In total Indian rupee was devalued three times, as per the question in 1991 Indian rupee was devalued twice.

Additional Information

• Reserve Bank of India issues currency notes in India.
• The Indian rupee became an independent currency with the establishment of RBI in 1935.
• Reserve Bank of India issues all currency notes above one rupee.
• Indian Rupee was devalued in three instances but four times.
• Indian Rupee was devalued for the first time in 1949.
• Indian Rupee was devalued for the second time in 1966.
  • India’s war with Pakistan in late 1965 played a key role in the 1966 devaluation.
  • It was the result of the first major financial crisis the government faced.
  • Inflation had caused Indian prices to become much higher than world prices at the pre-devaluation exchange rate.
  • There was foreign pressure on India to reform its economy.