Q.What is meant by 'rupee convertibility'? Is the Indian rupee fully convertible?

Convertibility isn't an all-or-nothing status — a currency can be freely convertible for some kinds of transactions and restricted for others.

Rupee convertibility refers to the freedom to convert the Indian rupee into a foreign currency, and a foreign currency back into rupees, without needing special government permission.

The Indian rupee is not fully convertible across all types of transactions:

• Current account convertibility (for transactions related to trade in goods and services, such as paying for imports or receiving payment for exports) — fully allowed, with no restriction.
• Capital account convertibility (for transactions involving cross-border investment and capital flows, such as an Indian resident freely investing abroad, or large capital transfers) — only partially allowed, meaning many such transactions still require regulatory approval or are subject to limits. …

Assuming 'convertibility' is a single yes/no status for the whole currency — it must be answered separately for the current account and the capital …