WBCS.LIVE practice question

The Tarapore Committee was constituted by the RBI to examine the framework for what?

Solve this multiple-choice question and check the correct answer with its explanation below.

Answer options

  1. Non-Performing Assets (NPAs)
  2. Digital Currency Regulation
  3. Capital Account Convertibility
  4. Microfinance Institutions

Correct answer and explanation

Correct answer: Capital Account Convertibility

Explanation: āœ… Correct Answer: C) Capital Account Convertibility šŸ“š Explanation: The Reserve Bank of India constituted two specialized committees under the chairmanship of S.S. Tarapore in 1997 and 2006. Both committees were exclusively tasked with laying out a clear roadmap and examining the preconditions for fuller Capital Account Convertibility (CAC) in India. This means allowing the free flow of capital into and out of the country without rigid foreign exchange restrictions.