RBI liberalises EEFC account scheme

Reserve Bank of India has relaxed the exchange earners foreign currency account scheme by removing the ceiling of $3 million.

Authorised dealers can now permit their exporter constituents to extend trade related loans or advances to overseas importers out of their EEFC balances without any ceiling, RBI said in a notification in Mumbai on Friday.

This relaxation shall be effective up to June 30, 2003, subject to a review, it said.

Transactions relating to loans/advances from EEFC accounts may be reported by the authorised dealer on quarterly basis, starting with the quarter ending March 31, 2003 as per the prescribed format annexed to the concerned regional office of the central bank, it added.