BANKING AFFAIRS

Detailed explanation-1: -The Reserve Bank of India established the Committee on Capital Account Convertibility (CAC) or S.S Tarapore Committee to propose a roadmap for full convertibility of the rupee on the capital account. In May 1997, the committee submitted its report.

Detailed explanation-2: -The Committee on Capital Account Convertibility (CAC) or Tarapore Committee was constituted by the Reserve Bank of India for suggesting a plan on full convertibility of Rupee on Capital Account. The committee submitted its report in May 1997. Was this answer helpful?

Detailed explanation-3: -The Tarapore Committee (2006) defined capital account convertibility as the “freedom to convert local financial assets into foreign financial assets and vice versa.”

Detailed explanation-4: -The SS Tarapore committee’s report on fuller capital account convertibility released in 2006 argued that even countries that had comfortable fiscal positions have experienced currency crises and rapid deterioration of the exchange rate.

Detailed explanation-5: -Tarapore Committee recommended that before capital account was made convertible the rate of inflation should be brought down for three years within: Q.