What is the use of EEFC account?

What is the use of EEFC account?

Ans. Exchange Earners’ Foreign Currency Account (EEFC) is an account maintained in foreign currency with an Authorised Dealer Category – I bank i.e. a bank authorized to deal in foreign exchange.

What is EEFC account?

Exchange earners’ foreign currency account (EEFC) is an account maintained in foreign currency with an authorised dealer i.e. a bank dealing in foreign exchange. No interest is payable on EEFC accounts. Up to 100% foreign exchange earnings can be credited to the EEFC account.

What is EEFC and RFC account?

Members are kindly aware that any individual residing in India is permitted to open Exchange Earners Foreign Currency (EEFC) account and Resident Foreign Currency (RFC) account. EEFC is an account maintained in foreign currency with an Authorised Dealer i.e. a bank dealing in foreign exchange.

What is the maximum amount that can be deposited in EEFC account?

Is there any prescribed limit of deposits in EEFC? There is no such limit. One can credit his or her entire foreign exchange earnings into this account, subject to some permissible credits.

What is EEFC payment?

One-stop account to deposit forex income and convert as you need. APPLY ONLINE.

Can loan be taken against EEFC account?

4. An authorised dealer may, in his commercial judgment and in compliance with the prudential norms, grant loans in foreign exchange to his constituent maintaining EEFC Account or RFC Account, against the security of funds held in such account.

What is Fcnr Eefc RFC?

Foreign Currency (Non-resident) Account (Banks) Scheme – FCNR (B) Account. Non-resident Ordinary (NRO) Rupee Account Scheme. Special Non-Resident Rupee Account- SNRR Account. Exchange Earners Foreign Currency (EEFC) Account. Resident Foreign Currency (RFC) Account.

What are FCNR accounts?

FCNR stands for Foreign Currency Non Resident Account (Banks) Account Opening. This is a kind of fixed deposit account opened for depositing income earned overseas. The account is held in foreign currency.

Can loan be given against EEFC account?

Can EEFC account have negative balance?

balance in the EEFC account will be zeroized. converted from EEFC account and credited to the INR account. If D is 0 or negative, no action would be taken.

What are the permitted debit in EEFC account?

Following are the permissible debits: Payment in foreign exchange towards the cost of goods purchased from 100% EOU, EPZ, STP or EHTP. Payment of custom duty (as per provisions of the FTP) Payment outside India, towards all permissible Current Account and Capital Account transactions.

Which is better FCNR or NRE FD?

Mashruwala adds, “If you are certain that you will repatriate the maturity proceeds, then it is best to invest in the FCNR as you protect yourself against currency risk. Conversely, if you are certain that your investment will remain in India, NRE would be a better choice.”