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Convertibility of rupee implies
(a) being able to convert rupee notes into gold
(b) allowing the value of rupee to be fixed by market forces
(c) freely permitting the conversion of rupee to other currencies and vice versa
(d) developing an international market for currencies in India



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Convertibility of rupee refers to the ability to freely convert the Indian rupee to other currencies and vice versa. It means that individuals and entities can exchange their rupee holdings for other currencies, such as the US dollar, Euro, or any other internationally accepted currency, without restrictions or limitations imposed by the government.

This convertibility allows for international trade, investment, and financial transactions to take place smoothly, as it provides ease of currency exchange and promotes economic integration with the global economy.


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