Q. “S.S. Tarapore Committee” is often seen in news is related to?
Explanation: An economy might allow its currency full or partial convertibility in the current and the capital accounts.
- If domestic currency is allowed to convert into foreign currency for all current account purposes, it is a case of full current account convertibility.
- Similarly, in cases of capital outflow, if the domestic currency is allowed to convert into foreign currency, it is a case of full capital account convertibility.
- After the recommendations of the S.S. Tarapore Committee (1997) on Capital Account Convertibility, India has been moving in the direction of allowing full convertibility in this account, but with required precautions.
Source: Ramesh Singh