Date:02/09/2006 URL: http://www.thehindubusinessline.com/2006/09/02/stories/2006090203400600.htm

Back RBI sets up task force

Our Bureau

Review of extant rules on current, capital accounts

Mumbai , Sept. 1

The Reserve Bank of India has constituted an internal task force to re-examine the existing regulations on current and capital accounts and make recommendations to remove the operational impediments in the path of liberalisation already in place.

The task force will be headed by Mr Salim Gangadharan, CGM In-Charge, Foreign Exchange Department, RBI, and will have the following terms of reference:

Undertake a review of the extant regulations that straddle current and capital accounts, especially items in one account that have implication for the other account and iron out inconsistencies in such regulations.

Examine existing repatriation/surrender requirements in the context of current account convertibility and management of capital account.

Identify areas where streamlining and simplification of procedure is possible and remove the operational impediments, especially in respect of the ease with which transactions at the level of authorised entities are conducted, so as to make liberalisation more meaningful.

Ensure that guidelines and regulations are consistent with regulatory intent.

Review the delegation of powers on foreign exchange regulations between Central Office and Regional offices of the RBI and inter alia, examine, selectively, the efficacy in the functioning of the delegation of powers by RBI to authorised dealers.

The Task Force is empowered to devise its work procedure, constitute working groups in various areas, co-opt permanent/special invitees and meet various trade associations, representative bodies or individuals to facilitate its work.