The Reserve Bank of India (RBI), with a view to give a boost to exports, has relaxed exporter earners' foreign currency account (EEFC) scheme by allowing export-oriented units to retain up to 100 per cent of their forex receipts in their EEFC accounts from the existing 70 per cent.
Further, the central bank has rationalised the Scheme : one, those who can retain up to 100 per cent of their receipt in foreign exchange and others who can retain up to 50 per cent of their receipt in foreign exchange.
The EEFC account scheme enables exporters and other exchange earners to retain a portion of their receipts in foreign exchange with an authorised dealers (AD) in India.
According to the RBI a 100 per cent EOU or a unit situated in (a) export processing zone or (b) software technology park or (c) electronic hardware technology park, will now, be eligible to credit up to 100 per cent of their foreign exchange receipts to their EEFC account, against the existing eligibility of credit up to 70 per cent.
So far, the facility of crediting up to 100 per cent of receipts was available only to status holder exporters and professionals who rendered services in their individual capacity to entities outside India.
"As a result of this liberalisation, the facility of crediting up to 100 per cent of foreign exchange receipts to their EEFC account will now also be available to status holder exporters, professionals, 100 per cent export-oriented units and units in export promotion zones, software technology parks and electronic hardware technology parks," the central bank said in a statement.
