BANKING AFFAIRS

Detailed explanation-1: -All categories of foreign exchange earners, such as individuals, companies, etc., who are resident/s in India, may open EEFC Accounts.

Detailed explanation-2: -Who can open an EEFC account? Ans. All categories of foreign exchange earners, such as individuals, companies, etc., who are resident in India, may open EEFC accounts.

Detailed explanation-3: -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, subject to the terms and conditions of the Exchange Earners’ Foreign Currency Account Scheme specified in the Schedule.

Detailed explanation-4: -It is a facility provided to the foreign exchange earners, including exporters to credit 100 percent 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.

Detailed explanation-5: -An exporter firm / company shall be permitted to open and maintain not more than 5 DDAs.