What is an EEFC Account and what are its benefits?
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.
Who can open an EEFC account?
All categories of foreign exchange earners, such as individuals, companies, etc. who are resident in India, may open EEFC accounts.
What are the different types of EEFC accounts? Can interest be paid on these accounts?
An EEFC account can be held only in the form of a current account. No interest is payable on EEFC accounts.
How much of one’s foreign exchange earnings can be credited into an EEFC account?
One can credit up to 100 per cent of his/ her foreign exchange earnings into the EEFC account, subject to permissible credits and debits.
Whether EEFC Account can be opened by Special Economic Zone (SEZ) Units?
No, SEZ Units cannot open EEFC Accounts.
However, a unit located in a Special Economic Zone can open a Foreign Currency Account with an authorised dealer in India subject to certain conditions. SEZ Developers can open EEFC Accounts.
Is there any Cheque facility available?
Yes; Cheque facility is available for operation of the EEFC account.