BANKING AFFAIRS

Detailed explanation-1: -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-2: -Answer: The Reserve Bank of India established the Committee on Capital Account Convertibility (CAC) or 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-3: -b The Tarapore committee was setup by the Reserve Bank of India in 1997 under the chairmanship of former RBI deputy governor S S Tarapore to “lay the road map” to capital account convertibility.

Detailed explanation-4: -Tarapore Committee, was an experts’ committee formed by the Reserve Bank of India to study the feasibility of capital account convertibility in India.

Detailed explanation-5: -Capital account convertibility is a feature of a nation’s financial regime that centers on the ability to conduct transactions of local financial assets into foreign financial assets freely or at market determined exchange rates. It is sometimes referred to as capital asset liberation or CAC.