Question

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

• A. Dr Rakesh Mohan
• B. Dr C Rangarajan
• C. SS Tarapore
• D. KJ Udeshi
• E. None of these

Answer 1

The correct option is C SS Tarapore

Capital Account Convertibility (allows local currency to be exchanged for foreign currency without any restriction on the amount) was first coined as a theory by Reserve Bank of India in 1997 by the Tarapore Committee, in an effort to find fiscal and economic policies that would enable developing third world countries transition to globalised market economy.