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Exchange Earners' Foreign Currency Account (EEFC) is a special category of account with a facility provided to the foreign exchange earners, including exporters, to credit 100 per cent of their foreign exchange earnings to the account, so that the account holders do not have to convert foreign exchange into rupees and vice versa, thereby minimizing the transaction costs.
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
Exchange Earners Foreign Currency (EEFC) Account serve as an invaluable tool for customers including exporters navigating the complexities of international trade and foreign exchange transactions. It helps in streamlining financial operations, mitigate currency risks, enhance overall efficiency in managing foreign earnings and many more.
Retain foreign exchange in the currency you receive it and earmark your balance to make foreign currency payments later, without conversion.
Park your inward remittances in EEFC Accounts in currencies like USD, EURO, GBP, etc.
All categories of foreign exchange earners, such as individuals, companies, etc., who are resident in India, may open EEFC accounts.
Facility to book forward, against EEFC balances and a choice to make payments in foreign currency directly from the EEFC Account.
1) Who can open an EEFC Account?
All categories of foreign exchange earners, such as individuals, companies, etc., who are resident/s of India, may open EEFC Accounts. However, entities in SEZ cannot open EEFC accounts, though they are eligible to open a Foreign Currency Account.
2) Do banks pay interest on these accounts?
An EEFC account can be held only in the form of a current account. No interest is payable on EEFC accounts.
3) What are the permissible credits for EEFC Accounts?
i) 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
ii) 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
iii) 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)
iv) 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)
v) Advance remittance received by an exporter towards export of goods or services
vi) 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
vii) 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
viii) Re-credit of unutilised foreign currency earlier withdrawn from the account
ix) 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
x) 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.
D) What are the permissible debits for EEFC Accounts?
Following are the permissible debits:
i) 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].
ii) 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
iii) Payment of customs duty in accordance with the provisions of the Foreign Trade Policy of the Central Government for the time being in force.
iv) 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.
v) Payment in foreign exchange to a person resident in India for supply of goods/services including payments for airfare and hotel expenditure.
Diamond Dollar (DDA) Account is an exclusive form of current account tailored for firms and companies engaged in the business of purchase/sale of rough or cut and polished diamonds. Specifically curated to enable & felicitate cross border transactions, the DDA account empowers exporter company/firms to maintain & park receivables in foreign currency eliminating the need for constant conversions to Indian Rupees.
Apply NowThe Diamond Dollar Account presents a range of benefits tailored to the unique needs of firms/companies engaged in the business of purchase/sale of rough or cut and polished diamonds, offering efficiency, convenience, and risk mitigation in their cross border transactions.
With the DDA, companies/firms can seamlessly make payments for the purchase of cut & polished diamond from local sources and for the import or purchase of rough diamonds from both overseas and local sources ensuring smooth supply chain management and timely transactions.
The DDA allows companies/firms to make payments for the import or purchase of gold from overseas or nominated agencies, providing a convenient avenue for managing gold-related transactions within a dedicated account.
Companies/Firms can also use the DDA to repay USD loans availed from the bank, offering flexibility in managing debt obligations and optimizing cash flow management.
By transacting entirely in US dollars, firms can mitigate currency market volatility risks, ensuring greater stability and predictability in financial transactions.
The DDA offers businesses greater control over their financial transactions related to rough/uncut/cut/polished diamonds & gold purchase, facilitating efficient fund management and financial planning.
Utilizing the DDA ensures compliance with regulatory requirements governing the FCY involvement in import and export of diamond & purchase of gold, providing businesses with peace of mind and regulatory adherence.
1) Who can open an DDA Account?
Diamond Dollar Account can be offered to firms and companies dealing in purchase/sale of rough or cut and polished diamonds/precious metal jewellery plain, minakari and/or studded with/without diamond and/or other stones, with a track record of at least 3 years in import/export of diamonds/coloured gemstones/diamond and coloured gemstones studded jewellery/plain gold jewellery, and having an average annual turnover of Rs 5 crore or above during preceding three licensing years. The DDA shall be opened in the name of the exporter and maintained in US Dollars only. An exporter firm/ company shall be permitted to open and maintain not more than 5 DDAs.
2) Do banks pay interest on these accounts?
No since DDA is maintained in the form of Current Account.
3) What are the permissible credits for DDA Accounts?
D) What are the permissible debits for DDA Accounts?
Special Non-Resident Rupee (SNRR) account is a special type of bank account introduced by the Reserve Bank of India (RBI. Any person resident outside India, having a business interest in India, can open a Special Non-Resident Rupee Account (SNRR account) with the bank for the purpose of putting through bona fide transactions in rupees which are in conformity with the provisions of the act, rules and regulations made thereunderAuthorized Dealer (AD) banks diligently identifies counterparties for such transactions, ensuring strict adherence to guidelines.
Apply NowSNRR account emerges as a pivotal facilitator of seamless financial transactions within the regulatory framework, bridging the gap between residents and non-residents in India. There are a host of other benefits to enjoy with SNRR Account mentioned below
The balances held in the SNRR account are eligible for repatriation, providing flexibility and convenience for non-residents managing their funds.
Transfers from any Non-Resident Ordinary (NRO) account to the SNRR account are prohibited, maintaining the segregation and regulatory integrity of the accounts.
The SNRR account may be designated as a resident Rupee account if the account holder becomes a resident, offering continuity and ease of transition in account status.
Opening of SNRR accounts by nationals and entities from Pakistan and Bangladesh requires prior approval from the Reserve Bank of India, ensuring compliance with regulatory protocols and security measures.
1) Who can open an SNRR Account?
Any person resident outside India, having a business interest in India, may open a Special Non-Resident Rupee Account (SNRR Account) with an authorised dealer for the purpose of putting through bona fide transactions in Rupees, not involving any violation of the provisions of the Act, rules and regulations made there under.
2) Do banks pay interest on these accounts?
No.
3) What are the permitted transactions in SNRR Account?
All the above transactions should be carried out only if recording and reporting of such transactions under FETERS can be undertaken apart from other FEMA compliances. It may be noted that the transactions under the Liberalized Remittance Scheme (LRS) are not permitted to be routed through the SNRR account.
Transfer between SNRR to SNRR a/c is permitted between SNRR A/Cs of same non-resident person for the purpose for undertaking different categories of transactions such as trade, ECB, Trade credits, etc. Such transfers will not form part of FETERS reporting.
