Current Account Transaction

A transaction under FEMA that is not a capital account transaction, including payments for imports/exports, remittances for living expenses, interest payments, and dividend remittances. Generally freely permitted subject to RBI limits.

Current Account Transaction is governed by the Foreign Exchange Management Act, 1999 and regulated by RBI. Understanding this concept is essential for ensuring regulatory compliance, avoiding penalties, and making informed corporate decisions in India.

Current Account Transaction is relevant for company secretaries, compliance officers, chartered accountants, corporate lawyers, board members, and all professionals dealing with FEMA regulatory matters in India.