14D.4
- Document type
- Manual
- Dated
- Category
- Exchange Management Manual
Utilisation of Funds held in EEFC Accounts
(i) Authorised dealers may allow utilisation of funds held in EEFC accounts for making all bonafide payments of the account holders in foreign exchange connected with their trade and business related transactions which are of a current account nature (besides certain permitted capital account transactions) without any restrictions except in the case of remittance of agency commission. In other words such business/trade related remittances may be allowed by authorised dealers beyond the monetary or percentage ceiling if any, prescribed in ECM, except that where rate of agency commission on export exceeds 12.5% of invoice value prior approval of Reserve Bank should be obtained.
(ii)Funds held in EEFC accounts may also be allowed to be used for the purposes listed in Annexure
NOTE: Funds held in EEFC accounts may also be allowed to be utilised for payment of air fare and hotel expenditure abroad in connection with visits abroad of the employee/directors etc. of the account holder