As per the Reserve Bank of India (RBI), the economic conditions in India are not yet suitable for full convertibility of Rupee. At present Rupee is convertible at which of the following accounts?begin{enumerate}item Fully at Capital Accountitem Fully at Current Accountitem Partially at Trade Accountend{enumerate}

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

As per the Reserve Bank of India (RBI), the economic conditions in India are not yet suitable for full convertibility of Rupee. At present Rupee is convertible at which of the following accounts?

A	Only 1
B	Only 2
C	Only 3
D	Only 1 & (3)

Explanation:

Detailed explanation-1: -Despite economic progress being made by India on many fronts, there have been regular challenges at both the global and local levels including the global financial crisis of 2008-09, a lack of inflation control, and rising NPAs-all of which have delayed full convertibility of the rupee.

Detailed explanation-2: -Indian is moving fast towards full capital account convertibility as almost all debt securities would be available through the liberal Fully Accessible Route overtime and the accelerated integration of the domestic and offshore currency markets that has delivered efficiency, said RBI deputy governor T Rabi Shankar.

Detailed explanation-3: -The rupee has been convertible on the current account since 1994, meaning it can be changed freely into foreign currency for purposes like trade-related expenses.

There is 1 question to complete.