RBI /2009-10/275
A.P. (DIR Series) Circular No. 22
December 29, 2009
To,
All Category - I Authorised Dealers Banks
Madam / Sir,
Exchange Earner's Foreign Currency (EEFC) Account – Clarification
Attention of Authorised Dealer Category –I (AD Category-I) banks is invited to
Regulation 4 of Foreign Exchange Management (Foreign Currency Accounts by a
person resident in India) Regulations, 2000 notified vide Notification no. FEMA
10/ 2000- RB dated May 3, 2000, as amended from time to time, in terms of which
a person resident in India is permitted to open, hold and maintain with an
Authorized Dealer in India a Foreign Currency Account known as Exchange Earner's
Foreign Currency (EEFC) Account subject to the terms and conditions of the
Exchange Earner's Foreign Currency Account Scheme specified in the Schedule to
the above mentioned Notification. Further, in terms of
A.P. (DIR Series)
Circular No.15 dated November 30, 2006, all categories of foreign exchange
earners are allowed to credit up to 100 per cent of their foreign exchange
earnings, as specified in the paragraph 1 (A) of the Schedule, to their EEFC
Account.
- We have been receiving queries from various types of foreign exchange
earners, particularly from the SEZ developers, about their eligibility to open,
hold and maintain EEFC Account. It is therefore, clarified that all categories
of foreign exchange earners are allowed to credit up to 100 per cent of their
foreign exchange earnings, as specified in the paragraph 1 (A) of the Schedule,
to their EEFC Account. As such, it will be in order for the Authorised Dealers
to allow SEZ developers to open, hold and maintain EEFC Account and to credit up
to 100 per cent of their foreign exchange earnings, as specified in the
paragraph 1 (A) of the Schedule.
- 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 (FEMA), 1999 (42 of 1999)
and is without prejudice to permissions / approvals, if any, required under any
other law.
Yours faithfully,
(Salim Gangadharan)
Chief General Manager-in-Charge