Dear Freinds,
We would like to bring to your attention that RBI has issued circular ref. A. P. (DIR Series) Circular No.79 dated 22nd January,2013 relating to relaxation in guidelines relating to the operation of EEFC accounts.
The circular is reproduced below for your reference:
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Quote:
Exchange Earners Foreign Currency (EEFC) Account, Diamond Dollar Account (DDA) & Resident Foreign Currency (RFC) Domestic Account
Attention of Authorised Dealer (AD) Category - I banks is invited to A.P. (DIR Series) Circulars Nos. 15, 124, 128, 8 and 12 dated November 30, 2006, May 10, 2012, May 16, 2012, July 18, 2012 and July 31, 2012 respectively, in terms of which all the foreign exchange earners were permitted to retain their foreign exchange earnings in EEFC account subject to certain conditions with an Authorized Dealer (AD) Category - I bank in India.
2. Keeping in view the operational difficulties faced by the account holders and the Authorized Dealer banks, as a measure of rationalization, it has been decided to dispense with the stipulation made in A.P. (DIR Series) Circular No. 124 dated May 10,2012, that EEFC account holders henceforth will be permitted to access the forex market for purchasing foreign exchange only after utilizing fully the available balances in the EEFC accounts.
3. The above instructions would also apply to the RFC (Domestic) and Diamond Dollar accounts.
4. All other terms and conditions stipulated in the Circulars referred to above remain unchanged.
5. AD Category - I banks may bring the contents of this circular to the notice of their constituents and customers concerned.
6. The directions contained in this circular have been issued under Sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions / approvals, if any, required under any other law.
Unquote
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In relation to the above relaxation, kindly note the below key points:
- In line with the above relaxation, you are now permitted to access forex market for purchasing foreign exchange even if you have funds available in your EEFC account / accounts across banks.
- With immediate effect, declaration mentioning that you are accessing the forex market for purchase of foreign exchange only after utilizing the available balances in the EEFC / RFC or DDA account balances held across banks need not be provided along with the foreign outward remittance requests.
- Whilst the access to the forex market has been relaxed, the requirement to utilize the balance in your EEFC account as of a month end for approved purposes latest by the last working day of the subsequent month will continue.
- All other terms and conditions of the earlier circular remains unchanged.
We would like to bring to your attention that RBI has issued circular ref. A. P. (DIR Series) Circular No.79 dated 22nd January,2013 relating to relaxation in guidelines relating to the operation of EEFC accounts.
The circular is reproduced below for your reference:
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Quote:
Exchange Earners Foreign Currency (EEFC) Account, Diamond Dollar Account (DDA) & Resident Foreign Currency (RFC) Domestic Account
Attention of Authorised Dealer (AD) Category - I banks is invited to A.P. (DIR Series) Circulars Nos. 15, 124, 128, 8 and 12 dated November 30, 2006, May 10, 2012, May 16, 2012, July 18, 2012 and July 31, 2012 respectively, in terms of which all the foreign exchange earners were permitted to retain their foreign exchange earnings in EEFC account subject to certain conditions with an Authorized Dealer (AD) Category - I bank in India.
2. Keeping in view the operational difficulties faced by the account holders and the Authorized Dealer banks, as a measure of rationalization, it has been decided to dispense with the stipulation made in A.P. (DIR Series) Circular No. 124 dated May 10,2012, that EEFC account holders henceforth will be permitted to access the forex market for purchasing foreign exchange only after utilizing fully the available balances in the EEFC accounts.
3. The above instructions would also apply to the RFC (Domestic) and Diamond Dollar accounts.
4. All other terms and conditions stipulated in the Circulars referred to above remain unchanged.
5. AD Category - I banks may bring the contents of this circular to the notice of their constituents and customers concerned.
6. The directions contained in this circular have been issued under Sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions / approvals, if any, required under any other law.
Unquote
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
In relation to the above relaxation, kindly note the below key points:
- In line with the above relaxation, you are now permitted to access forex market for purchasing foreign exchange even if you have funds available in your EEFC account / accounts across banks.
- With immediate effect, declaration mentioning that you are accessing the forex market for purchase of foreign exchange only after utilizing the available balances in the EEFC / RFC or DDA account balances held across banks need not be provided along with the foreign outward remittance requests.
- Whilst the access to the forex market has been relaxed, the requirement to utilize the balance in your EEFC account as of a month end for approved purposes latest by the last working day of the subsequent month will continue.
- All other terms and conditions of the earlier circular remains unchanged.
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