What is Current Account Transaction?

“Current Account Transaction” means a transaction other than a capital account transaction and includes :-i. Payments due in connection with foreign trade, other current business, services, and short-term banking and credit facilities in the ordinary course of business,

ii. Payments due as interest on loans and as net income from investments,

iii. remittances for living expenses of parents, spouse and children residing abroad, iv. expenses in connection with foreign travel, education and medical care of parents, spouse and children;

“Export”, with its grammatical variations and cognate expres­sions, means :-i. The taking out of India to a place outside India any goods,

ii. Provision of services from India to any person outside India;

“Foreign currency” means any currency other than Indian currency;

“Foreign Exchange” means foreign currency and includes :-i. Deposits, credits and balances payable in any foreign currency,

ii. Drafts, travelers cheques, letters of credit or bills of exchange, expressed or drawn in Indian currency but payable in any foreign currency,

iii. Drafts, travelers cheques, letters of credit or bills of exchange drawn by banks, institutions or persons outside India, but payable in Indian currency;