To safeguard exporters from currency fluctuation risks and converting remittances at the current market rates, RBI has facilitated the exporters to park foreign currency in the Exchange Earners’ Foreign Currency Account – a Current Account with authorised foreign exchange dealer banks.
What is an EEFC Account?
An EEFC Account is a non-interest bearing Current Account, maintained by an Authorised Dealer Category - I Bank, like ICICI Bank. It is a facility provided to the foreign exchange earners, including exporters, to credit 100 percent 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 minimising the transaction cost.
A person residing in India may open, hold and maintain an EEFC Account, subject to the terms and conditions, as may be specified by the RBI from time to time, including the FEMA Regulations 2000 governing the EEFC Account and the Foreign Exchange Management Act, 1999.
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Features and Benefits:
- Digital: Access the EEFC Account online, through our Internet Banking portal and Mobile Banking facility
- Convert, at your convenience: Retain foreign exchange in the currency you earn it and earmark your earnings to make payments at a later date, without conversion
- Online conversion to INR: Initiate an online conversion of the EEFC balance to your INR operated Current Account; anytime, anywhere
- Wide range of currencies: You can park your remittances in EEFC Accounts in <24>+ currencies like USD, EURO, GBP, etc.
- For everyone: Can be opened by all categories of foreign exchange earners, such as individuals, companies, etc. who are residents in India
- Accessibility of funds: Facility to book forward, against EEFC balances and a choice to make payments in foreign currency directly from the EEFC Account.
It can be opened in + currencies (USD – US Dollar, EUR - Euro, JPY – Japanese Yen, GBP – British Pound, CHF – Swiss Franc, AUD – Australian Dollar, CAD – Canadian Dollar, AED – UAE Dirham, CNH – Chinese Yuan, HKD – Hong Kong Dollar, KWD – Kuwaiti Dinar, SEK – Swedish Krona, QAR – Qatari Riyal, NOK – Norwegian Kroner, SGD – Singapore Dollar, ZAR – South African Rand, SAR – Saudi Riyal, NZD – New Zealand Dollar, DKK – Danish Kroner, BHD – Bahraini Dinar, KRW – Korean Won, OMR – Omani Rial, PLN – Poland Zloty, THB – Thai Baht).
Following are the permissible credits:
- Advance received against Exports (Goods/Services)
- Realisation of export bills
- Professional Fees (e.g. Director fees, consultancy, lecture, etc.)
- Payment received in foreign exchange by 100% EOU, EPZ, STP, EHTP for supply of goods to similar units or to a DTA
- Payment received by foreign exchange by a DTA for supply to an SEZ
- Payment received by an exporter for the purpose of counter trade.
Following are the permissible debits:
- Payment towards imports (Goods/ services)
- Trade related loans/advances extended by an exporter holding such an account to an importer/customer outside India (subject to regulations)
- Investments abroad, through Overseas Direct Investment (ODI)
- Payment in foreign exchange towards the cost of goods purchased from 100% EOU, EPZ, STP or EHTP
- Payment of custom duty (as per provisions of the FTP)
- Payment outside India, towards all permissible Current Account and Capital Account transactions.
EOU – Export Oriented Unit, EPZ- Export Processing Zone, STP – Software Technology Park, EHTP – Electronic Hardware Technology Park, DTA – Domestic Tariff Area, SEZ – Special Economic Zone, FTP – Foreign Trade Policy