Liberalising capital account

Further opening up would increase risks

Reserve Bank of India (RBI) Governor Shaktikanta Das had noted in an address last year that capital account convertibility would continue to be approached as a process and not as an event. India has been progressively liberalising its capital account and further opening up would depend on a combination of factors. Deputy Governor T Rabi Sankar in a speech last week talked about various issues in this context. India took a big step towards further liberalising the capital account last year with the introduction of the fully accessible route (FAR) for government securities. This essentially removed the limit on non-resident