Capital account transaction and Current account
transaction in Foreign Exchange
Ø
Capital Account Transaction : When there is
change in asset or liability , it is a capital account transaction.
e.g. Purchasing immovable properties in foreign and
raising loan in abroad.
Ø
Current Account Transaction : In this transaction there is no change in asset and
liability.
e.g. Export, Import, Travel, Medical treatment,
Education etc.
ü
Indian Currency
is fully convertible on current
account and partially convertible on
Capital account.
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