RESERVE BANK OF INDIA
Foreign Exchange Department
Central Office
Mumbai - 400 001
A.P. (DIR Series) Circular No. 128
May 16, 2012
To
All Category - I Authorised Dealer Banks
Madam / Sir,
Exchange Earner’s Foreign Currency (EEFC) Account
Attention of Authorised Dealer Category – I (AD Category – I) banks is invited
to A.P. (DIR Series) Circular No. 124 dated May 10, 2012 on the captioned
subject in terms of which 50% of the balances in the EEFC accounts should be
converted forthwith into rupee balances and credited to the rupee accounts as
per the directions of the account holder.
- Based on various queries received from Authorised Dealers, it is clarified
that the conversion of the EEFC balances into rupee balances will only be
applicable to available balances in the EEFC account which may be arrived at by
netting off earmarked amounts on account of outstanding forward / option
contracts booked before May 10, 2012.
- 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/2011-12/564