EEFC ACCOUNT PDF

It is a facility provided to the foreign exchange earners, including exporters, to credit per cent of their foreign exchange earnings to the account, so that the account holders do not have to convert foreign exchange into Rupees and vice versa, thereby minimizing the transaction costs. Who can open an EEFC account? All categories of foreign exchange earners, such as individuals, companies, etc. What are the different types of EEFC accounts?

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It is a facility provided to the foreign exchange earners, including exporters, to credit per cent of their foreign exchange earnings to the account, so that the account holders do not have to convert foreign exchange into Rupees and vice versa, thereby minimizing the transaction costs.

Who can open an EEFC account? All categories of foreign exchange earners, such as individuals, companies, etc. What are the different types of EEFC accounts? Can interest be paid on these accounts? An EEFC account can be held only in the form of a current account. No interest is payable on EEFC accounts.

Is there any Cheque facility available? What are the permissible credits into this account? Counter trade is an arrangement involving adjustment of value of goods imported into India against value of goods exported from India in terms of the Reserve Bank guidelines ; v Advance remittance received by an exporter towards export of goods or services; vi Payment received for export of goods and services from India, out of funds representing repayment of State Credit in U.

Can foreign exchange earnings received through an international credit card be credited to the EEFC account? Yes, foreign exchange earnings received through an international credit card for which reimbursement has been made in foreign exchange may be regarded as remittance through normal banking channel and the same can be credited to the EEFC account.

What are the permissible debits into this account? Is there any restriction on withdrawal in rupees of funds held in an EEFC account? However, the amount withdrawn in Rupees shall not be eligible for conversion into foreign currency and for re-credit to the account.

Whether the EEFC balances can be covered against exchange risk? Yes, the EEFC account balances can be hedged. The balances in the account sold forward by the account holders have to remain earmarked for delivery. However, the contracts can be rolled over.

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EEFC Accounts

EEFC Account. However, such resident Indian close relative, being made eligible to become joint account holder, shall not be eligible to operate the account during the life time of the resident account holder iii This account shall be maintained only in the form of non-interest bearing current account. No credit facilities, either fund-based or non-fund based, shall be permitted against the security of balances held in EEFC accounts by the AD Category — I banks. Further, in case of requirements, EEFC account holders are permitted to access the forex market for purchasing foreign exchange. This facility is not intended to enable exchange earners to maintain assets in foreign currency, as India is still not fully convertible on Capital Account. It may be noted that the provisions at paragraph iv a and iv b above will apply, mutatis mutandis, also to holder of either a Resident Foreign Currency Account Domestic or a Diamond Dollar Account DDA.

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EEFC Account - Valuable Banking Facilities for Exporters

What is EEFC account? The key purpose of the account is to reduce foreign currency transactions costs. Who can open EEFC account? What will the form of account?

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