RBI relaxes norms to utilise foreign currency account balance
Mumbai: Relaxing the norms for exporters, the Reserve Bank on Tuesday dispensed with the condition of fully utilising EEFC (Exchange Earner's Foreign Currency) balance before accessing the market for purchasing foreign exchange.
The decision, RBI said, was being taken to remove operational difficulties faced by the account holders and the banks.
"It has been decided to dispense with the stipulation... that EEFC account holders henceforth will be permitted to access the forex market for purchasing foreign exchange only after utilising fully the available balances in the EEFC accounts," RBI said in a notification.
RBI said the instructions would also apply to the Resident Foreign Currency (RFC) Domestic and Diamond Dollar accounts.
An EEFC is an account maintained in foreign currency with a bank dealing in foreign exchange.