597. The Indian approach to determining adequacy of foreign exchange reserves has evolved over the past few years. Various factors, ranging from the pioneering Report of the High Level Committee on Balance of Payments (Chairman: Dr. C. Rangarajan) to Governor Jalan’s exposition of the combination of global uncertainties, domestic economy, and national security considerations in determining liquidity at risk and thus assessing reserve adequacy (Paragraphs 23 and 24 of Statement on Monetary and Credit Policy, April 29, 2002), have contributed toward the process of development of such an approach.