in the partial convertibility of rupee what does capital transactions imply?
Under the reforms, partial convertibility of rupee was also allowed. Partial convertibility implies that for the purpose of international transactions, foreign currency could be bought or sold at a market determined price for transactions involving import and export of goods and services, remittances to the family and for interest or dividend payments on investment. However, this convertibility was not applicable for capital transactions.
Capital transactions, here, imply the transactions that result in sale & purchase of asset from one country to another country. Hence, the name partial convertibility.
Capital transactions, here, imply the transactions that result in sale & purchase of asset from one country to another country. Hence, the name partial convertibility.