Restriction on EEFC account balance

Till Now the export earner were permitted to retain 100% of their Forex earnings in Exchange Earner's Foreign Currency (EEFC) Account account with any  Authorised Dealers in India. After reviewing the EEFC scheme, RBI issued a circular (Circular No. 124 dated May 10, 2012) to amend the permission to retain the forex earnings in EEFC account. The amended rules are as follows.

For existing Balance in EEFC account.
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 with in 15 days of this circular.

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.


Henceforth the EEFC account holder will be permitted to access the forex market for purchasing foreign exchange only after utilising fully the available balances in the EEFC accounts. Authorised Dealers may, accordingly, obtain a declaration while selling foreign exchange to their constituents.