The Reserve Bank has said the country will continue to move towards capital account convertibility that would provide unfettered freedom to local entities to exchange the rupee with other currencies, after drawing lessons from the global financial crisis.
“We will continue to move towards liberalising our capital account, but we will revisit the roadmap to reflect the lessons from the crisis,” Governor D Subbarao said while speaking at a conference on the international monetary system in Zurich, Switzerland.
The governor further said, “our economy should traverse towards capital convertibility along a gradual path–the path itself being recalibrated on a dynamic basis in response to domestic and global developments.”
The government has been followed a consistent policy on allowing capital inflows in general and on capital account management in particular, he said.
