Capital Account Convertibility In India

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The resulting competition benefits the consumer of financial services since the products and services offered will have to become more efficient raising the bar to service at higher levels. 4. Check on Distortionary policies: It is argued that with CAC in place, the economy comes under vigilant watch by foreign players...
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Check on Distortionary policies: It is argued that with CAC in place, the economy comes under vigilant watch by foreign players. Thus any distortionary policies taken by the Government will be put under extreme scrutiny and it might lead to a currency crisis if such policies elicit unfavorable responses from such international players...
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