BANKING AFFAIRS

Detailed explanation-1: -Ans. An EEFC account can be held only in the form of a current account. No interest is payable on EEFC accounts.

Detailed explanation-2: -An EEFC account cannot credit any foreign exchange purchased in India, against rupees, without prior permission from the RBI. Provided these funds held in such accounts will not be lent or made available in any manner to any person or entity resident in India, that is not a unit in an SEZ.

Detailed explanation-3: -However, unspent foreign exchange originally drawn from EEFC a/c can be credited back to the same EEFC a/c. Transfer of funds from one EEFC account to another, from one branch/bank to another is permitted, provided both the accounts are held in the same names.

Detailed explanation-4: -The current account represents a country’s imports and exports of goods and services, payments made to foreign investors, and transfers such as foreign aid.

Detailed explanation-5: -Available in 17 Currencies: You can open an EEFC account in the following currencies: United States Dollar (USD)