Take a look at the essential concepts, terms, quotes, or phenomena every day and brush up your knowledge. Here’s your knowledge nugget for today on Balance of Payment (BoP) . 🚨  Gear up for UPSC Prelims 2026—Practice smarter, revise faster, and succeed with our Special Quiz Magazine.  (Click Here) 🚨 ( Relevance : UPSC has asked questions on this topic in the Prelims examination in the past. Two of the PYQs are given at the end of the article. These are important topics that you should revise before the Prelims 2026.) According to the Reserve Bank of India (RBI), India’s balance of payment (BoP) data showed that the current account deficit (CAD) has moderated to $30.1 billion or 1% of GDP in the period of April-December 2025 from $36.6 billion (1.3 per cent of GDP) during April-December 2024. Let’s get back to basics: understand BoP, its components, forex reserve, and look at the BoP crisis of 1991. Key takeaways: 1.…