New Delhi, March 12 (IANS) Finance Minister Pranab Mukherjee Friday said the government was taking necessary steps to gradually move towards full convertibility of the Indian rupee.

'Full convertibility of rupee is our ultimate aim. We are gradually moving towards it. But it is not the right time to implement it in one go now,' Mukherjee said in a reply to a question in the Rajya Sabha.

The full convertibility of the Indian currency means that the rupee would be made freely exchangeable into other currencies and vice versa. Also, this would mean that international investors can buy and sell Indian assets at will.

Since 1994, the rupee has been partially convertible by which the currency is changed freely into foreign currency for business and trade expenses. But it cannot be converted freely for activities like acquiring overseas assets.

Full convertibility of the rupee was one of the bottlenecks telecom firm Bharti Airtel faced in its bid to acquire South African firm MTN.

Mukherjee said the government was adopting a cautious approach, taking into consideration all aspects and the risks involved in opening up the economy by allowing convertibility of the currency.

Experts feel full convertibility of rupee would facilitate further growth and higher investments.