Write down the structure of capital account?

1.	Write down the structure of capital account?
Answer» Capital account consists of three components: 1. Private Capital 2. Banking Capital 3. Official Capital 1. Private Capital: Private capital consists of foreign investments, long term loan and foreign currency deposits. 2. Banking Capital: Banking capital includes movement into external financial asset and liabilities commercial and cooperative banks authorized to dealing in foreign exchange. 3. Official Capital: It includes RBI’s holdings of foreign currency and special drawing rights (SDR) held by the Government.

Answer»

Capital account consists of three components:

1. Private Capital

2. Banking Capital

3. Official Capital

1. Private Capital: Private capital consists of foreign investments, long term loan and foreign currency deposits.

2. Banking Capital: Banking capital includes movement into external financial asset and liabilities commercial and cooperative banks authorized to dealing in foreign exchange.

3. Official Capital: It includes RBI’s holdings of foreign currency and special drawing rights (SDR) held by the Government.

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