Difference between Current Account Convertibility and Capital Account Convertibility in INDIA

Here is the difference between Current Account Convertibility and Capital Account Convertibility. 

Current Account Convertibility: Current Account convertibility means the freedom to convert one currency into other internationally accepted currency wherein the exporters and importers allowed a free conversion of rupee. But still none is allowed to purchase any assets abroad. In other words, the companies who deals in export and import of Goods and services, they have to give money in foreign currency (internationally accepted). So, Indian Companies convert the money in foreign currency and foreign companies also do the same thing but they are not allowed to purchase any assets abroad.

Capital Account Convertibility: Capital Account Convertibility means that rupee can now be freely convertible into any foreign currencies for acquisition of assets like shares, properties and assets abroad. Further, the banks can accept deposits in any currency. 

Keep in mind that Current Account Convertibility and Current Account Deficit are two Different terms. Do no get confuse between these terms. Similarly, Capital Account Convertibility and Capital Account Deficit are also two different terms.

Click Here to read or Download more Banking related Topics in Detail (Study Materials for PO,Clerk)

You might also like:

If you want to Download Papers of other examinatins like SSC CGL, SSC Multitasking, SSC10+2, SSC Stenographer, IBPS PO, IBPS Clerk, Insurance Paper, Bank Various Papers, Intelligence Bureau Papers, IES, GATE and Many more then Click Here

Thanks to visit the site.

Do not forget to like us on faebook.