The Hindu Business Line : RBI staff oppose full convertibility

The All India Reserve Bank Employees Association (AIRBEA) has reacted sharply to the Reserve Bank of India's decision to appoint a committee to work out the modalities for full capital account convertibility of the rupee.

In a statement here on Thursday, Mr Samir Ghosh, General Secretary of AIRBEA, urged the Prime Minister not to force the RBI to go for capital account convertibility, a move earlier championed by the Tarapore Committee but subsequently abandoned. The full convertibility of the rupee, Mr Ghosh felt, would lead to "dollarisation" of the economy and the rupee would be relegated to the second position even within the country. Even in the US, doubts were now being expressed about the maintainability of the capital account convertibility, he said.

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