What is EEFC account?

Hey Pal,

To understand what is EEFC account meaning, I would like to start with the fact that the RBI has made it possible for exporters to store foreign cash in the Exchange Earners' Foreign Currency Account, a current account with authorised foreign exchange dealer banks, protecting them from the dangers of currency volatility and converting remittances at the current market rates.

The EEFC full form in banking is Exchange Earners' Foreign Currency. An Authorised Dealer Category I Bank like ICICI Bank maintains an EEFC Account, a non-interest-bearing current account. 

It is a facility offered to anyone who earns foreign currency, especially exporters, to credit 100% of their foreign currency earnings to the account, minimising transaction costs by eliminating the need for account holders to convert foreign currency into rupees and vice versa.

Subject to the terms and restrictions, including the FEMA Regulations 2000 regulating the EEFC Account and the Foreign Exchange Management Act, 1999, as may be prescribed by the RBI from time to time, a person residing in India may open, hold, and maintain an EEFC Account.

• Digital: 

You can use the Internet Banking interface and Mobile Banking service to access the EEFC Account online.

• Convert whenever it's convenient:

Keep foreign currency in the currency in which you earn it and set aside your profits to make payments later on without converting them.

• Online to INR conversion:

Anytime, anywhere, start an online conversion of your EEFC balance to your INR-operated current account.

• Variety of currencies Remittances: 

can be parked in EEFC Accounts in 17>+ currencies, such as USD, EUR, GBP, etc.

• For everyone: 

can be opened by all classes of foreign exchange earners who reside in India, such as people, businesses, etc.

• Accessibility of funds: 

Possibility of forwarding booking against EEFC balances, and option to make payments in foreign currencies straight from the EEFC Account.

I would like to conclude here as I believe this suffices your query about the EEFC account meaning. I hope this helps:)

Read More:

I have opened an Exchange Earners' Foreign Currency Account (EEFC) to lower the cost of currency exchange transactions. Because I had a foreign currency payment obligation in addition to earning foreign currency. This guide is all about the EEFC account meaning.

What is an EEFC account?

Exchange Earners' Foreign Currency (EEFC) accounts are kept with banks that handle international exchanges and are valued in foreign currencies. In order to allow exporters and individuals to keep their foreign exchange earnings in banks. It is without exchanging them into local currency. The Reserve Bank of India created this programme in 1992. You are eligible to open an EEFC account. If you get incoming payments in foreign currency with revenues in foreign currencies. However, they are not paid interest on their deposits because it is an interest-free programme. Now you know what is EEFC account.

What credit categories are permitted in the EEFC account?

• Contribution received from abroad on a regular basis.

• An exporter may obtain an advance or collections when exporting products or services.

• Payments are made in foreign currency by a 100% EOU or unit in an EPZ, STP, or EHTP for the delivery of goods to another component. It can be in the national tariff area or a unit with comparable payment terms.

• A professional's income by performing services in his or her personal capacities, such as directors fees, consultant fees, lecture fees, honoraria, etc.;

• The credit of unused foreign exchange previously withdrawn from the EEFC account and repayment of loans made for trade by exporters with EEFC accounts.

Which debts can be made to the EEFC account?

• Outside contributions for approved current account activity and a permitted capital account activity

• The cost of products purchased with 100% EOU or with units in EPZ, STP, or EHTP is paid for.

• Customs duty payments and exchange loans made by an exporter to a customer outside of India.

You are now aware of the EEFC account meaning.