Eefc account..?

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What is EEFC Account ?

How does it operates ?

one of my Client uses EEFC Account for imports , is there any calculation for Foreign Exchange Gain / Loss in it ?

If any , how to calculate it ?

Kindly guide me friends.......

 

Replies (2)

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. It is a facility provided to the foreign exchange earners, including exporters, to credit 100 per cent of their foreign exchange earnings to the account, so that the account holders do not have to convert foreign exchange into Rupees and vice versa, thereby minimizing the transaction costs.100% foreign exchange earnings can be credited to the EEFC account subject to the condition that the sum total of the accruals in the account during a calendar month should be converted into Rupees on or before the last day of the succeeding calendar month after adjusting for utilization of the balances for approved purposes or forward commitments. (A. P. (DIR. Series) Circular No. 12, dated July 31, 2012).

You may find some more help through this FAQ from RBI

https://www.rbi.org.in/scriptts/FAQView.aspx?Id=21


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