Explain the meaning of term ‘Current Account transactions' as defined under the Foreign Exchange Management Act, 1999.

According to section 2(j) of the Foreign Exchange Management Act, 1999, 'Current Account transaction' means a transaction other than a capital account transaction and without prejudice to the generality of the foregoing such transaction includes, (i) payments due in connection with foreign trade, other current business, services, and short-term banking and credit facilities in the ordinary course of business. (ii) payments due as interest on loans and as net income from investments. (iii) remittances for living expenses of parents, spouse and children residing abroad, and (iv) expenses in connection with foreign travel, education and medical care of parents, spouse and children.