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Eefc account for exporter

This query is : Resolved 

please guide me benefits of EEFC account for exporter and also explain how is it work? i am new in export business.


EEFC or Exchange Earners` Foreign Currency Account is an account maintained in foreign currency with an Authorised Dealer, i.e a bank dealing in foreign exchange.
As per FEMA Foreign Exchange Management Act, Only an authorised person [generally an authorised banker] can deal in foreign currency transaction i.e. Other than authorised person, nobody is allowed to deal directly in foreign currency. In order to deal i.e. receive forex and/or pay forex we have to go through an authorised dealer only, per say we cannot pay directly in forieign currecy at the same time cannot receive forex direcly. An account is opened with the authorised dealer i.e Exchange earners foreign currency account in order to realise and or keep funds in forex in that account. We can also make payments in forex from this account which we have received and deposited in this account for e.g. X had received $500 on 01 April 2008 he is to pay Y co [USA] $ 250 he can pay the same through this account. He also can get the same converted into INR and vise versa.........
Indian exports have surged over the last decade owing to an unprecedented boom in sectors like software, biotechnology, gems, jewellery, textiles etc. As a result of this, the volume of inward remittances has also increased significantly. To shield the firms engaged in regular export and import from the exchange rate fluctuations RBI has allowed parking of foreign currency by exporters in an account designated as Exchange Earners Foreign Currency Account (EEFC). EEFC accounts are Current Accounts held in foreign currency with authorized dealers of foreign exchange in the country.

but eefc account is required to open before iec application or later. thanx for above information.

after getting iec you will be go to bank regarding the ADCODE , WHEN AD CODE WILL GENERATE YOU WILL BE ABLE TO EEFC ACCOUNT.

PLEASE noted:

Features & Benefits

EEFC accounts are offered without any minimum balance requirements. Along with the account, we will offer you the following set of services:
o Foreign Cheque Collections: You can deposit foreign currency cheques payable anywhere in the world. Our wide coverage, enabled with the help of correspondent bank network will ensure that the cheques are credited to the Account extra fast.
o Foreign Currency Drafts: Using your EEFC Account, you can also purchase Foreign Currency Drafts in USD, GBP, EURO, AUD & CAD. There will not be any foreign currency margin on the same.
o Free monthly statements will be available on demand
o Foreign Currency Cheque Book for international transactions, on demand
o Cash withdrawal from EEFC account: Withdrawals in foreign currency is permitted only against applicable conversion margin, whereas there is no restriction on cash withdrawals in Indian Rupees.
o Cash deposit into EEFC Account: Deposits in foreign currency is permitted only against applicable conversion margin.
o Remittances from EEFC Account: In lieu of currency conversion margins, the EEFC Accounts will be eligible

after getting IEC you will be go to bank regarding the ADCODE ,BANK PROVIDE YOU AD CODE THEN YOUR ACCOUNT AUTOMATICALLY WILL BE EEFC ACCOUNT.

PLEASE noted:

Features & Benefits

EEFC accounts are offered without any minimum balance requirements. Along with the account, we will offer you the following set of services:
o Foreign Cheque Collections: You can deposit foreign currency cheques payable anywhere in the world. Our wide coverage, enabled with the help of correspondent bank network will ensure that the cheques are credited to the Account extra fast.
o Foreign Currency Drafts: Using your EEFC Account, you can also purchase Foreign Currency Drafts in USD, GBP, EURO, AUD & CAD. There will not be any foreign currency margin on the same.
o Free monthly statements will be available on demand
o Foreign Currency Cheque Book for international transactions, on demand
o Cash withdrawal from EEFC account: Withdrawals in foreign currency is permitted only against applicable conversion margin, whereas there is no restriction on cash withdrawals in Indian Rupees.
o Cash deposit into EEFC Account: Deposits in foreign currency is permitted only against applicable conversion margin.
o Remittances from EEFC Account: In lieu of currency conversion margins, the EEFC Accounts will be eligible .


today i visit to my hdfc bank but they suggest me if your doing big business then it will be ok for EEFC account but for small business you can start with current account only.

Sir,

what is your query ????????????

in this regards, i have already explain that exporter account is EEFC, in previous query i had explain now i suggest you RTI LETTER PUT UP TO RBI.

REGARDS,




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