Before knowing about “full convertibility of rupee”, one should know first “what is convertibility of currency?” Currency convertibility means “the freedom to convert one currency into other internationally accepted currencies. Full convertibility of rupees means unified market determined exchange rate regime, c onverting rupees in to foreign currencies on both sides i.e. from “current account” and from “capital account” side. From current account side means, wherein the exporters and importers were allowed a free conversion of rupee. But still none was allowed to purchase any assets abroad. From capital account side means, that rupee can now be freely convertible into any foreign currencies for acquisition of assets like shares, properties and assets abroad. Further, the banks can accept deposits in any currency. For example, if a foreigner buys a building in India, and after 5 yrs its selling price rises so sells it at five times the cost he collected, now he has rupees in