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RFC Account Key Features EEFC Account Eligibility FAQs

Exchange Earners Foreign Currency (EEFC) Account

The Exchange Earners’ Foreign Currency (EEFC) Account is a non-interest-bearing current account created especially for exporters and foreign exchange earners. With Ujjivan SFB’s EEFC Account, you can retain 100% of your foreign currency earnings without immediate conversion into Indian Rupees. It helps you mitigate currency fluctuation risk and manage overseas obligations smoothly.

 

Enjoy seamless conversions, effortless transactions, and the freedom to manage your money in foreign currencies with our EEFC Account.

Features & Benefits

  • Retain Foreign Earnings in Multiple Currencies: 

    Hold your 100% foreign exchange earnings in major currencies such as USD, GBP and EUR to suit your international Biz needs.
  • Mitigate Exchange Rate Risks:

    Protects against currency fluctuations by retaining earnings in Foreign Currencies
  • Enhance Trade Efficiency:

    Simplifies cross-border trade transactions
  • Accessibility of funds: 

    Facility to book forward, against EEFC balances and a choice to make payments in foreign currency directly from the EEFC Account.
  • Convert yours Fx fund:

    Initiate the conversion of the EEFC balance to your INR operated Current Account without any hassle*.
  • Interest Component :

    EEFC account is a non-interest bearing current account.

*Please note: This is subject to the condition that the sum total of the accruals in the account during a calendar month should be converted into Rupees on or before the last day of the succeeding calendar month after adjusting for utilisation of the balances for approved purposes or forward commitments. Refer RBI circular - A. P. (DIR Series) Circular No. 12 dated 31st of July 2012.

 

EEFC Account Eligibility

All categories of Foreign Exchange Earners such as

  • The applicant must be a resident of India, which can include individuals, companies, partnerships, or other entities operating within the country
  • The applicant must be a foreign exchange earner, such as exporters, professionals earning foreign currency, or businesses engaged in foreign exchange transactions
  • Exporters must possess a valid Importer-Exporter Code (IEC) issued by the Directorate General of Foreign Trade (DGFT) to undertake foreign trade transactions
  • The person must adhere to the terms and conditions specified by the Reserve Bank of India (RBI) regarding EEFC accounts, FEMA Regulations 2000, and the Foreign Exchange Management Act (FEMA) of 1999

 

EEFC Account Opening Form click here

FAQs

1. 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.

2. 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 conditions stipulated in Regulation 4 (D) of Foreign Exchange Management (Foreign Currency Accounts by a person Resident in India) Regulations dated January 21, 2016.

3. What are the different types of EEFC accounts?

An EEFC account can be held only in the form of a current account.

4. Can interest be paid on these accounts?

No interest is payable on EEFC accounts.

5. What are the permissible credits into this account?

  • Inward remittance through normal banking channels, other than remittances received on account of foreign currency loan or investment received from abroad or received for meeting specific obligations by the account holder;
  • Payments received in foreign exchange by a 100 per cent Export Oriented Unit or a unit in (a) Export Processing Zone or (b) Software Technology Park or (c) Electronic Hardware Technology Park for supply of goods to similar such units or to a unit in Domestic Tariff Area;
  • Payments received in foreign exchange by a unit in the Domestic Tariff Area for supply of goods to a unit in the Special Economic Zone (SEZ);
  • Payment received by an exporter from an account maintained with an authorised dealer for the purpose of counter trade. (Counter trade is an arrangement involving adjustment of value of goods imported into India against value of goods exported from India in terms of the Reserve Bank guidelines);
  • Advance remittance received by an exporter towards export of goods or services;
  • Payment received for export of goods and services from India, out of funds representing repayment of State Credit in U.S. Dollar held in the account of Bank for Foreign Economic Affairs, Moscow, with an authorised dealer in India;
  • Professional earnings including directors’ fee, consultancy fee, lecture fee, honorarium and similar other earnings received by a professional by rendering services in his individual capacity;
  • Re-credit of unutilised foreign currency earlier withdrawn from the account;
  • Amount representing repayment by the account holder's importer customer in respect of trade related loan/advances granted by the exporter (subject to compliance with the extant guidelines) holding EEFC account; and
  • The disinvestment proceeds received by the resident account holder on conversion of shares held by him to ADRs/GDRs under the Sponsored ADR/GDR Scheme approved by the Foreign Investment Promotion Board of the Government of India.



 

6. What are the permissible debits into this account?

  • Payment outside India towards a permissible current account transaction [in accordance with the provisions of the Foreign Exchange Management (Current Account Transactions) Rules, 2000] and permissible capital account transaction [in accordance with the Foreign Exchange Management (Permissible Capital Account Transactions) Regulations, 2000].
  • Payment in foreign exchange towards cost of goods purchased from a 100 percent Export Oriented Unit or a Unit in (a) Export Processing Zone or (b) Software Technology Park or (c) Electronic Hardware Technology Park
  • Payment of customs duty in accordance with the provisions of the Foreign Trade Policy of the Central Government for the time being in force.
  • Trade related loans/advances, extended by an exporter holding such account to his importer customer outside India, subject to compliance with the Foreign Exchange Management (Borrowing and Lending in Foreign Exchange) Regulations, 2000.
  • Payment in foreign exchange to a person resident in India for supply of goods/services including payments for airfare and hotel expenditure.

7. Whether EEFC Account is permitted to be held jointly with a resident relative?

Resident individuals are permitted to include resident relative(s) as a joint holder(s) in their EEFC account on ‘former or survivor’ basis. However, such resident Indian relative(s) shall not be eligible to operate the account during the life time of the resident account holder

8. How much of one’s foreign exchange earnings can be credited into an EEFC Account?

100% foreign exchange earnings can be credited to the EEFC account subject to the condition that the sum total of the accruals in the account during a calendar month should be converted into Rupees on or before the last day of the succeeding calendar month after adjusting for utilization of the balances for approved purposes or forward commitments.