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In-convertibility of paper currency into coin would lead to a run on Post Office Savings Banks. But during the First World War, the value of the pound fell alarmingly due to rising war expenses.

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The silver rupee continued as the currency of India through the British Raj and beyond. The United Kingdom began to look to its possessions as India to compensate for the gold that was sold. The discovery of large quantities of silver in the United States and several European colonies resulted in a decline in the value of silver relative to gold, devaluing India's standard currency. This had severe consequences in the nineteenth century when the strongest economies in the world were on the gold standard.

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As a result, the price of gold fell rapidly. This dealt a blow to an already deteriorating British economy. Other currencies including the Hyderabadi rupee and the Kutch kori had different values. At the conclusion of the war, job dating carrefour market the value of the pound was only a fraction of what it used to be prior to the commencement of the war.