Exchange Earner's Foreign Currency (EEFC) Account will no longer earn interest
A person resident in India is permitted to open and maintain with an authorized dealer in India a Foreign Currency Account known as Exchange Earner's Foreign Currency (EEFC) Account. Currently, EEFC accounts are permitted to be maintained in the form of non-interest bearing current accounts. .
Reserve Bank of India has decided on 6th October 2007 to permit all exporters to earn interest on EEFC accounts to the extent of outstanding balances of US $ 1 million per exporter. The permission was valid up to October 31, 2008 and was subject to review.
The measure has since been reviewed in consultation with the Government of India and Reserve Bank of India has notified on August 04, 2008 to withdraw the facility from November 01, 2008. Accordingly, with effect from November 01, 2008, all EEFC accounts shall only be permitted to be opened and maintained in the form of non-interest bearing current accounts.
For RBI notification dated 6th October 2007 on EEFC Account... Click here
Interest Rate Subvention Scheme on Export Credit to be closed ... Click here
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