BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Exchange Earners’ Foreign Currency Account
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Exchange Eligible Foreign Currency Account
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Earners’ Eligible Foreign Currency Account
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Earners’ Exchange Foreign Currency Account
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Detailed explanation-1: -A person resident in India may open, hold and maintain with an authorised dealer in India, a Foreign Currency Account to be known as Exchange Earner‟s Foreign Currency (EEFC) Account. EEFC accounts can be opened, held or maintained only in the form of non-interest bearing current account. 1.
Detailed explanation-2: -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.
Detailed explanation-3: -Resident Foreign Currency Account (RFC) The RFC account can be in the form of current or savings or term deposit. The funds in this account will be free from all restrictions regarding the utilisation of foreign currency balances, including any restrictions on investments in any form outside India.
Detailed explanation-4: -FFMCs are authorised to purchase foreign exchange from non-residents visiting India and residents, and to sell foreign exchange for private and business travel purposes only.