Current Account Deficit refers to :

Receipts on Current Account < Payments on Current Account

The correct answer is option (1) : Receipts on Current Account < Payments on Current Account

A Current Account Deficit occurs when a country's payment on the current account exceed its receipts. The Current Account includes transactions related to trade in goods and services, income receipts, and unilateral transfers. When a country imports more goods and services, pays more income to foreign entities, and has higher unilateral transfers going out than coming in, it results in a current account deficit.