Exchange Earners Foreign Currency (EEFC) Account and Resident Foreign Currency (RFC) account – Joint holder – liberalisation
Sept 20, 2011
Sub : Exchange Earners Foreign Currency (EEFC) Account and Resident Foreign Currency (RFC) account – Joint holder – liberalisation
Members are kindly aware that any individual residing in India is permitted to open Exchange Earners Foreign Currency (EEFC) account and Resident Foreign Currency (RFC) account. EEFC is an account maintained in foreign currency with an Authorised Dealer i.e. a bank dealing in foreign exchange. It is 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. RFC is an account maintained by a Non-resident Indian who has returned home for permanent settlement, after staying abroad for a minimum period of one year. RFC accounts can be maintained in USD/EUR/GBP/JPY/AUD/CAD in the form of Savings / Term Deposit.
Now the Reserve Bank of India has issued a Circular No.15 dt. Sept.15, 2011 thereby permitting the EEFC and RFC account holders to have a joint account with a resident close relative. However, the joint account holder will not be eligible to operate the account during the life time of the resident prime account holder.
Members may kindly take note of the above liberalization extended by RBI in terms of EEFC and RFC account holders. A copy of the said RBI circular is attached herewith for reference.
Ali Ahmed Khan
COUNCIL FOR LEATHER EXPORTS