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 co – operative 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 co – operative 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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