EEFC Account - RBI clarifies 50% conversion is not applicable to Resident Foreign Currency Accounts
VIDE Circular No 124 dated 10th May 2012, RBI had clarified that:
50% of the balances in the EEFC (Exchange Earner's Foreign Currency Account) accounts should be converted forthwith into rupee balances and credited to the rupee accounts as per the directions of the account holder. In respect of all future forex earnings, an exchange earner is eligible to retain 50% (as against the previous limit of 100%) in non-interest bearing EEFC accounts. The balance 50% shall be surrendered for conversion to rupee balances.
On a review of the above Circular, now, it is decided that the provisions contained in the aforesaid Circular will not apply to the Resident Foreign Currency Accounts.
RBI Circular No 8, Dated: July 18, 2012