Thus, the foreign exchange crisis once again surfaced in early nineties. The policy response in the aftermath of the crisis this time was a comprehensive reform.
As far as regulating cross border transactions are concerned, I would like to mention three landmarks: (a) adoption of a market determined exchange rate system in 1993, (b) Commitment to conform to Article 8 of the IMF charter – current account convertibility – in 1994 and (c) Enactment of FEMA in 1999 – removing the shackles of a repressive regime.