What is capital account and current account under LRS?

What is capital account and current account under LRS?

All transactions involving foreign exchange have been classified either as capital or current account transactions.
Current Account is an account showing the trade of merchandise, whereas the Capital Account gives place to all capital transactions. Capital account transactions are like opening of foreign currency account abroad with a bank or purchase of property and investments. Current account transactions include expenses during personal travel, gifting or donation or expense on medical treatment or education.‚Äč
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