Reserve Bank Of India
A.P.(DIR Series) Circular No. 79
January 22, 2013
To
All Category - I Authorized Dealer Banks
Madam/ Sir,
Exchange Earner's 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.
- The above instructions would also apply to the RFC (Domestic) and Diamond
Dollar accounts.
- All other terms and conditions stipulated in the Circulars referred to above
remain unchanged.
- AD Category - I banks may bring the contents of this circular to the notice
of their constituents and customers concerned.
- 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.
Yours faithfully,
(Rashmi Fauzdar)
Chief General Manager
RBI/2012-13/390