ECONOMICS (CBSE/UGC NET)

ECONOMICS

BALANCE OF PAYMENTS

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
India decides to spend more in maintaining its diplomats in the South Korea.
A
Debit in Indian Capital a/c
B
Credit in Indian Current a/c
C
Debit in Indian Capital a/c
D
Debit in Indian Current a/c
Explanation: 

Detailed explanation-1: -According to FEMA guidelines for NRIs, sale proceeds of such assets are non-repatriable outside India without RBI approval. Repatriation of up to USD 1 million per financial year is allowed if you have inherited the property or retired from employment in India.

Detailed explanation-2: -FEMA permits receipt of foreign inward remittance by Indian residents either directly or through ADs. Foreign exchange received directly has to be surrendered to ADs within 7 days, except for retention limit of USD2, 000 referred to earlier. 2. Foreign Currency coins can be retained indefinitely without any limit.

Detailed explanation-3: -Invisible account of the balance of payments is a subcategory of the current account. The invisible account includes three sub categories – services, transfers and income. Here, the invisible account registers receipts and payments from exports and imports of services, transfers and income.

Detailed explanation-4: -FEMA 16/2000-RB, dated May 3, 2000 (Receipt from and Payment to, a Person Resident Outside India), as amended from time to time, provided the beneficiary of the account is a NRI as defined in Foreign Exchange Management (Deposit) Regulations, 2000.

There is 1 question to complete.