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EEFC Account Facility Restored, but in Current Account Only
Attention
of authorised dealers is invited to paragraph 2 (ii) of the A.P.(DIR Series)
Circular No. 6 dated 14th August, 2000 advising that 100% Export Oriented Units
or a unit in (a) Export Processing Zone or (b) Software Technology Park or (c)
Electronic Hardware Technology Park may credit 35%, and any other person
resident in India may credit 25% of the eligible inward remittances to the EEFC
Account.
2.
It has now been decided that with immediate effect, 100% Export Oriented
Units or a unit in (a) Export Processing Zone or (b) Software Technology Park or
(c) Electronic Hardware Technology Park may credit 70%, and any other person
resident in India may credit 50% of the eligible inward remittances as indicated
in the Schedule to the Reserve Bank Notification No. FEMA10/2000-RB dated 3rd
May 2000. It is clarified that this is applicable only to the eligible inward
remittances received on or after the date of this circular.
3.
It is further advised that all the EEFC accounts should be held in the
form of non-interest bearing Current Accounts only and no credit facility,
whether funded or non-funded, should be made available against the EEFC
balances. Existing credit facilities, if any, should be withdrawn on expiry of
the period for which the credit was extended.
4.
All other terms and conditions of the Scheme contained in the Schedule to
the Reserve Bank Notification No.FEMA10/2000-RB dated 3rd May, 2000 and as
amended vide Reserve Bank�s Circular dated 14th August, 2000, referred to
above, remain unchanged.
5.
Amendment to the Bank�s Notification issued under Foreign Exchange
Management Act, 1999 is being issued separately.
6.
Authorised dealers may bring the contents of this circular to the notice
of their concerned constituents.
7.
The directions contained in this circular have been issued under Section
10(4) and Section 11(1) of the Foreign Exchange Management Act 1999 (42 of
1999). Any contravention or non-observance of these directions is subject to the
penalties prescribed under the Act.
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