India became fully convertible on the current account in 1994 (barring a few quantitative restrictions and a small negative list of transactions {keeping in view larger public interests/good} ) and therefore all current account transactions are freely allowed as long as they are for bonafide purposes and are routed through normal banking channels. 54.
The strategy has also evolved to become more active tactically, to further enhance the return of its assets. In terms of diversification, the Bank has complemented its traditional asset class diversification approach with regime-diversification analysis, risk-factor diversification techniques, and different investment strategies, including total-return portfolios. An additional aspect for effective FX intervention is to follow a well-defined strategy with clear objectives.