economics medium Fill in the Blank

In the Balance of Payments (BOP) accounting, the unilateral transfer of funds by Non-Resident Indians (NRIs) to their families living in India is recorded as a credit entry in the ___ Account.

  1. Production
  2. Current
  3. 112
  4. negative

Answer: Current

Remittances are classified as unilateral (one-way) transfers where no physical good, service, or financial asset is exchanged in return. Because they represent current income flowing into the country and directly impact the nation's immediate purchasing power and consumption, they are strictly recorded in the Current Account, not the Capital Account. India is consistently the world's largest recipient of such remittances.

Topic International Economics - BOP
Exam Relevance UPSC Prelims, SSC CGL, Banking
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