2 B BIRC, EEFC & FORWARD CONTRACTS, TCs
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.
What does BIRC stand for in the context of foreign exchange facilities for individuals?
BIRC stands for Basic Import Remittance Certificate, issued by authorised dealers to evidence outward remittances made for import of goods into India.
What does BIRC stand for in foreign exchange terminology?
Bank Identified Rate Card used for quoting exchange rates.
What is an EEFC account and who is eligible to open one?
An Exchange Earners' Foreign Currency (EEFC) account is a current account held in foreign currency, eligible to be opened by any person resident in India who earns foreign exchange, including exporters, professionals, and returning NRIs.
Who is classified as a 'person resident in India' eligible for EEFC account?
Persons earning foreign exchange while residing in India.
What percentage of foreign exchange earnings can be credited to an EEFC account?
Up to 100% of foreign exchange earnings can be credited to an EEFC account, but the balances must be utilised for permissible current account transactions within a specified period.
What is the maximum retention period for balances in an EEFC account?
Balances must be utilized within the same calendar month earned.
Are interest payments allowed on EEFC account balances?
No, EEFC accounts are non-interest-bearing current accounts; no interest is paid on the balances held in these accounts.
Can an EEFC account holder freely use the balance for permissible current account transactions?
Yes, EEFC balances can be used for permissible current account purposes.
Video classes for this chapter
More chapters in Module B
Master the full FOREIGNEXCHA syllabus
Every chapter of Foreign Exchange Facilities for Individuals — videos, tests, notes and one-liner decks in one place.