As per the news published in various financial newspapers, the RBI is reworking the roadmap on Capital Account Convertibility. If this is done, who amongst the following would be able to invest in foreign projects or acquire assets outside India without any restrictions?
A. Public Sector Banks
B. Companies which are registered in India
C. Govt of India
D. Any Individual

Only (A)

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Only (B)

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Only (C)

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All (C) and (D)

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Solution

The correct option is B Only (B)
As per the news published in various financial newspapers, the RBI is reworking the roadmap on Capital Account Convertibility. If this is done, companies which are registered in India would be able to invest in foreign projects or acquire assets outside India without any restrictions. Capital account convertibility refers to the process of converting local financial assets to foreign financial assets. It is also known as capital asset liberation.

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Similar questions

Consider the following recommendations:

1.RBI should target only on reducing inflation and use only a single instrument to keep inflation under control;

2.Foreign investors should be allowed to invest in government bond market;

3.Government should sell small under-performing public sector banks;

4.Banks should be allowed to open branches and ATMs everywhere without restrictions.

Which of the above are among the draft recommendations of the RaghuramRajan Committee on Financial Sector Reforms?

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