The current account is one of the two main components of a country's balance of payments, alongside the capital account. It includes the balance of trade, net cash transfers, and net factor income, with the Reserve Bank of India reporting on it. A positive current account balance indicates a nation is a lender, while a negative balance represents borrowing; for instance, India had a current account deficit of $7.80 billion in the second quarter of 2014.

1. Current Account
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2. What is current account?
 Current account is among the two components of a
country’s balance of payments, the other being the
capital account.
 It comprises of the balance of trade, net cash transfers
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and net factor income.
 Current account, in India, is reported by the central bank
i.e. the Reserve Bank of India.

3. Positive and negative current account
balance
 When a nation’s current account balance is positive, it
indicates that the nation is a net lender to the rest of the
world.
 A negative balance shows that the nation is a net
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borrower from the rest of the world.

4. Current account deficit
 Current account deficit occurs when a nation’s
businesses and government import more goods and
services than what they export.
 During the second quarter of 2014, India registered a
current account deficit of $7.80 billion.
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