Question

Q. With reference to Capital Account convertibility, which of the following committees were appointed?

• A. Narasimham Committee
• B. Urijit Patel Committee
• C. Y. V. Reddy Committee
• D. Tarapore Committee

Answer 1

The correct option is D Tarapore Committee

Explanation:

• The Tarapore Committee was appointed to set out the roadmap towards Fuller Capital Account Convertibility.
• The terms of reference for the committee included
  • To examine implications of fuller capital account convertibility on monetary and exchange rate management, financial markets, and financial system
  • To study the implications of dollarisation in India of domestic assets and liabilities and internationalization of the Indian rupee
  • To provide a comprehensive medium-term operational framework for fuller capital account convertibility taking into account the implications and progress in revenue and fiscal deficit of both center and states
  • To survey regulatory framework in countries that have advanced towards fuller capital account convertibility
• The committee in this regard laid emphasis on improving the Regulatory and supervisory standards across the banking system before making the rupee more freely tradeable.