BANKING AFFAIRS

BANKING GENERAL KNOWLEDGE

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

Who amongst the following was the Head of the committee which gave its recom-mendations on the modalities for Capital Account Convertibility?

A	Dr Rakesh Mohan
B	Dr C Rangarajan
C	SS Tarapore
D	KJ Udeshi

Explanation:

Detailed explanation-1: -In order to study the feasibility of the CAC, the Reserve Bank of India (RBI) set up the Committee on Capital Account Convertibility with S S Tarapore as its head in 1997.

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: -S.S Tarapore committee was constituted in 1997 to look to the matters of. No worries!

Detailed explanation-5: -Current account convertibility refers to the freedom to convert your rupees into other internationally accepted currencies and vice versa without any restrictions whenever you make payments. Similarly, capital account convertibility means the freedom to conduct investment transactions without any constraints.

There is 1 question to complete.