Question:medium

“As per the National Stock Exchange (NSE) data, dated 9th June, 2023, there was a net selling off worth Rs. 309 crore by Foreign Institutional Investors (FIIs) over the period of one month i.e., 9th May, 2023 – 9th June, 2023.” 
The above-mentioned transactions will be recorded on ______ side of _________ account of Balance of Payments of India. 
(Choose the correct alternative to fill in the blanks)

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Capital account transactions involve cross-border investments and loans. Debit entries indicate outflows, while credit entries reflect inflows.
Updated On: Jan 13, 2026
  • Debit, Current
  • Credit, Capital
  • Credit, Current
  • Debit, Capital
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The Correct Option is D

Solution and Explanation

When Foreign Institutional Investors (FIIs) divest their assets, it leads to capital outflows. These outflows are categorized as debit entries within the capital account of the Balance of Payments (BoP).
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