In the setting of bill prices, the IO had two goals. It wished to sell its bills at or above the rate at which they were exchanged for rupees in India, sales below this figure leading to losses that had to be recouped by higher taxes, more borrowing or less capital expenditure. Secondly, it wanted stability. Fears that the exchange would fall and money would be returned to the UK at a loss discouraged the arrangement of forward contracts and trade, inward capital investment and English investors' purchase of rupee debt, and weakened the credit of India in the London capital market, investors being aware of the impact an unstable exchange rate had on trade. It also prompted exchange banks to maintain small Indian reserves, which reduced liquidity and increased Indian interest rates, with rates remaining high for longer than otherwise, as speculators were less willing to transfer funds to India to benefit from the London/Indian rate differential.

Whether the IO always obtained the highest possible return from the sale of bills was the subject of some debate. Many believed that the banks agreed the day before each tender the price at which they would bid. Officials had little knowledge of the demand for import and export bills and did not expect the size of tenders to accurately reflect trade needs.