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 <17>+ 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.
Frequently Asked Questions (FAQs)
Who can open an EEFC Account with ICICI Bank ?
All categories of foreign exchange earners, such as individuals, companies, etc., who are resident/s in India, may open EEFC Accounts. However, entities in SEZ cannot open EEFC accounts, though they are eligible to open a Foreign Currency Account.
How can I open an EEFC Account with ICICI Bank ?
You can get in touch with your Relationship Manager or give a missed call on 92 0548 0548.
Do banks pay interest on these accounts?
EEFC Accounts are non-interest bearing accounts to park your foreign earnings for short terms.
How much of one’s foreign exchange earnings can be credited into an EEFC Account?
Up to 100% part settlement of Inward Remittance to EEFC Account, is also possible.
In how many currencies can a customer open an EEFC Account, with ICICI Bank?
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 – Emirati Dirham, CNH – Chinese Yuan, HKD – Hong Kong Dollar, KWD – Kuwaiti Dinar, SEK – Swedish Krona, QAR – Qatari Riyal, RUB – Russian Rubble, SGD – Singapore Dollar, ZAR – South African Rand and LKR – Sri Lankan Rupee).
What are the documents required for opening an EEFC Account?
The documents required for opening an EEFC Account are the same as the list of documents required for opening a Current Account, as per the constitution of the entity.
What are the permissible credits for EEFC Accounts ?
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.
What are the permissible debits for EEFC Accounts?
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