FEFI · FOREIGNEXCHA

Exchange Earner's Foreign Currency (EEFC) Account

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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Q

What type of account is an EEFC account in terms of its category and interest-bearing nature?

A

An EEFC account is a non-interest-bearing current account held in foreign currency in India.

Q

What kind of account is an EEFC account — current, savings, or fixed deposit?

A

It is a current account only, no other type.

Q

What is the maximum percentage of eligible foreign exchange earnings that can be credited to an EEFC account?

A

Up to 100% of eligible foreign exchange earnings may be credited to the EEFC account.

Q

Does an EEFC account pay any interest on the foreign currency balance held?

A

No, EEFC account is non-interest-bearing.

Q

In which form must an EEFC account be maintained?

A

An EEFC account must be held only as a current account; it cannot be maintained as a savings or fixed deposit account.

Q

Up to what percentage of eligible foreign exchange earnings can be credited to an EEFC account?

A

Up to 100% of eligible foreign exchange earnings.

Q

Is any interest paid on balances held in an EEFC account?

A

No interest is payable on an EEFC account, as it is expressly a non-interest-bearing account.

Q

By when must unutilised EEFC accruals for the calendar month of March be converted into rupees?

A

On or before the last day of April.

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