Duvvuri Subbarao, the governor of the Reserve Bank of India, on Monday warned it could introduce a Tobin tax to curb capital inflows.
Subbarao told an audience at the Peterson Institute in Washington, D.C. that a duty tax on foreign-exchange transactions, often referred to as a Tobin tax, was still on the table as a means to deal with the rapid rise in capital flowing across its borders, a phenomenon which he said may in the long run may impair financial stability.
According to the Reserve Bank,
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