MEANING OF EEFC ACCOUNT, LEGAL BASE AND BASIC CONCEPT, IMPORTANT DEFINITIONS, WHO CAN OPEN AN EEFC ACCOUNT, FEATURES OF EEFC, ACCOUNT TYPE AND INTEREST RULE, HOW MUCH FOREIGN EXCHANGE CAN BE CREDITED, WHY IS EEFC USEF
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Foreign Exchange Facilities for Individuals — Foreign Exchange Facilities for Individuals.
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What does EEFC stand for in the context of foreign exchange facilities?
EEFC stands for Exchange Earners' Foreign Currency account, a facility that allows eligible residents to retain a portion of their foreign exchange earnings in a foreign currency account in India.
What does EEFC account allow exporters to do with their foreign exchange earnings?
Retain foreign exchange earnings in a bank account abroad.
Under which Act and Regulation is the EEFC account governed?
EEFC accounts are governed under the Foreign Exchange Management Act (FEMA) 1999, specifically under FEMA (Foreign Currency Accounts by a Person Resident in India) Regulations, 2015.
Which type of account can an EEFC account be opened as in India?
It can be opened as a current account only.
Who is the regulatory authority that issues guidelines and circulars for EEFC accounts?
The Reserve Bank of India (RBI) is the regulatory authority that issues Master Directions and circulars governing EEFC accounts under the powers conferred by FEMA 1999.
Under which regulation of FEMA are EEFC accounts specifically governed?
FEMA (Current Account Transactions) Rules, 2000.
Who is eligible to open an EEFC account in India?
Any person resident in India who is an exchange earner — including individuals, companies, partnership firms, and other entities — is eligible to open an EEFC account with an Authorised Dealer (AD) bank.
Can an EEFC account holder use the balance to pay for import of goods?
Yes, EEFC balance can be used for import payments.
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