Wednesday, 8 August 2018

EXCHANGE EARNERS' FOREIGN CURRENCY (EEFC) ACCOUNT

EXCHANGE EARNERS' FOREIGN CURRENCY (EEFC) ACCOUNT
i) A person resident in India may open with, an Authorised Dealer bank in India, an account in foreign currency called the
Exchange Earners' Foreign Currency (EEFC) Account.
ii) The limits of eligible credits to the EEFC accounts are 100 per cent. FC amount credited in the account is to be converted in to
rupees by end of the month next to the month of credit.
iii) This account shall be maintained only in the form of non-interest bearing current account and no credit facilities, either fundbased
or non-fund based, shall be permitted against the security of balances held in EEFC accounts by the Authorised Dealers
banks.
iv) The eligible credits represent inward remittance received through normal banking channel, other than the remittance received
pursuant to any undertaking given to the Reserve Bank or which
represents foreign currency loan raised or investment received from outside India or those received for meeting specific
obligations by the account holder.
v) Payments received in foreign exchange by a unit in Domestic Tariff Area (DTA) for supplying goods to a unit in Special
Economic Zone out of its foreign currency account are to be treated as eligible foreign exchange earnings for the purpose of
credit to the EEFC account.
vi) Authorised Dealer banks may, till further notice, permit their exporter constituents to extend trade related loans / advances to
overseas importers out of their EEFC balances without any ceiling as amended from time to time.
vii) Authorised Dealer banks may permit exporters to repay packing credit advances whether availed in Rupee or in foreign
currency from balances in their EEFC account and / or rupee resources to the extent exports have actually taken place.

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