D Subbarao, Governor of Reserve Bank of India, has clarified that India’s central bank has no plan to abandoned long-term plans for fuller capital account convertibility. On the other hand RBI is in the favor of imposing the capital control on the short term investments.

Responding to a query about the RBI’s backing down from the capital account convertibility road map while speaking at the research conference organised by the central bank to mark its 75th anniversary in Mumbai attended by central bankers across the World, Mr. Subbarao said “I believe we are not. We are still traversing the road map but we will re-work the road map. It will be dependent on developments within the country and around the world.’’

He also responded to the issue of inflation targeting as the sole of objective of monetary policy, he said RBI is a multiple service institution with the objective of price and financial stability along with growth but one of the main limitation is presence of single inflation measure to capture the price conditions in the entire economy.