Question

Name the broad categories of transactions recorded in the ‘current account’ of the Balance of Payments Accounts.

Answer 1

Transactions recorded in the capital account are – The Balance of Payments on Capital Account shows all capital inflows and outflows during an accounting year. It covers:

1. Borrowings (such as commercial loans and external aid)
2. Investments (including Foreign Direct Investment and portfolio investment)
3. NRI deposits
4. Banking capital
5. Short-term debt
6. Rupee debt servicing
7. Other forms of capital