CREDIT FACILITIES AGAINST EEFC BALANCE, REPAYMENT OF PACKING CREDIT FROM EEFC BALANCE, CHANGE IN RESIDENTIAL STATUS, JOINT HOLDING FACILITY, SEZ UNITS AND EEFC ACCOUNT, CHEQUE FACILITY, LATEST PRACTICAL POSITION
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Foreign Exchange Facilities for Individuals — Foreign Exchange Facilities for Individuals.
One-liners from this chapter
Free sample — 8 of 66 rapid-fire Q&A cards.
Can an authorized dealer grant credit facilities in rupees against EEFC account balances?
Yes, authorized dealers may grant credit facilities in Indian rupees against the balances held in EEFC accounts, subject to the usual margin requirements.
Can an authorized dealer grant foreign currency credit facilities against EEFC account balances?
Yes, foreign currency credit facilities are permissible against EEFC balances.
Is overdraft permitted against EEFC account balance for trade-related transactions?
Yes, overdraft or credit facilities can be extended against EEFC balances for genuine trade and business purposes at the discretion of the authorized dealer.
Can packing credit in foreign currency be repaid from EEFC account balance without penal interest?
Yes, repayment from EEFC balance attracts no penal interest.
Can packing credit advances be repaid using balances held in an EEFC account?
Yes, exporters are permitted to repay outstanding packing credit advances (pre-shipment credit) from balances available in their EEFC accounts.
Under which FEMA provision is repayment of packing credit from EEFC account permitted?
Under FEMA Notification No. 14, relating to export credit.
What is the regulatory basis permitting repayment of packing credit from EEFC balance?
RBI has permitted this under FEMA to facilitate exporters in managing their foreign currency resources and pre-shipment credit obligations efficiently.
What type of credit facility in rupees can be availed against EEFC account balances?
Rupee loans as working capital or demand loans are permissible.
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