Read the following statements:
Statement I: Under BPM6, almost all transactions in financial assets such as bonds and equity shares are placed in the financial account.
Statement II: The Reserve Bank of India has stopped publishing the balance of payments accounts as per the old system.
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Statement I is true but Statement II is false.
Statement I: Under BPM6, almost all transactions in financial assets such as bonds and equity shares are placed in the financial account. — True. This is the most important change of the new IMF classification.
Statement II: The Reserve Bank of India has stopped publishing the balance of payments accounts as per the old system. — False. The RBI continues to publish the accounts as per the old system also.
NCERT (2026-27): “Box 6.1: The balance of payments accounts presented above divide the transactions into two accounts, current account and capital account. However, following the new accounting standards introduced by the International Monetary Fund in the sixth edition of the Balance of Payments and International Investment Position Manual (BPM6) the Reserve Bank of India also made changes in the structure of balance of payments accounts. According to the new classification, the transactions are divided into three accounts: current account, financial account and capital account. The most important change is that almost all the transactions arising on account of trade in financial assets such as bonds and equity shares are now placed in the financial account. However, RBI continues to publish the balance of payments accounts as per the old system also, therefore the details of the new system are not being given here.” |