RBI to take view on measures recommended 
by Tarapore Committee

Hyderabad, Sept 02: The Reserve Bank of India would take a view on the set of measures recommended by the S S Tarapore Committee on fuller capital account convertibility for the year 2006-07, including phasing out of participatory notes shortly.

"As of now they are just recommendations and we need to decide whether these measures can be implemented without any changes or with some modification after taking a considered view on the issue in consultation with the Government of India," RBI Governor Y V Reddy told reporters after the award presentation ceremony organised by the Institute for Development and Research in Banking Technology (IDRBT).

"RBI needs to consider the measures suggested, to implement during the current year shortly, as already we have entered the month of September," he said.

"Any slowdown in us economy would have an adverse impact on emerging economies. But we are thoroughly convinced that its effect on Indian economy would be very minimal," Reddy replied to a question on the impact of the perceived slowdown of American economy.

Asked about the possible impact of global oil prices and inflation on the growth of economy, Reddy expressed confidence in the performance of country`s economy during this year.

He said, "we don`t see any need to review the projected growth rate of 7.5-8 per cent in the GDP for this year as well."