While the ability to act is judged in terms of the legal authority and the necessary resources, the willingness to act is judged in terms of having a clear and unambiguous mandate, operational independence, accountability, a healthy relationship with the industry, etc.
The possibility of early tapering of QE programme by the US Fed triggered large selloffs by the FIIs, especially in the bond market leading to heightened volatility of Rupee in line with other EME currencies.