A.P.(DIR Series) Circular No.16 (October 10, 2000)Dear Sirs,
Exchange Earners’ Foreign Currency (EEFC) Account Scheme
Attention of authorised dealers is invited to paragraph 2 (ii) of the A.P.(DIR Series) Circular No. 6 dated 14th August, 2000 advising that 100% Export Oriented Units or a unit in (a) Export Processing Zone or (b) Software Technology Park or (c) Electronic Hardware Technology Park may credit 35%, and any other person resident in India may credit 25% of the eligible inward remittances to the EEFC Account.
- It has now been decided that with immediate effect, 100% Export Oriented Units or a unit in (a) Export Processing Zone or (b) Software Technology Park or (c) Electronic Hardware Technology Park may credit 70%, and any other person resident in India may credit 50% of the eligible inward remittances as indicated in the Schedule to the Reserve Bank Notification No. FEMA10/2000-RB dated 3rd May, 2000. It is clarified that this is applicable only to the eligible inward remittances received on or after the date of this circular.
- It is further advised that all the EEFC accounts should be held in the form of non-interest bearing Current Accounts only and no credit facility, whether funded or non-funded, should be made available against the EEFC balances. Existing credit facilities, if any, should be withdrawn on expiry of the period for which the credit was extended.
- All other terms and conditions of the Scheme contained in the Schedule to the Reserve Bank Notification No.FEMA10/2000-RB dated 3rd May, 2000 and as amended vide Reserve Bank’s Circular dated 14th August, 2000, referred to above, remain unchanged.
- Amendment to the Bank’s Notification issued under Foreign Exchange Management Act, 1999 is being issued separately.
- Authorised dealers may bring the contents of this circular to the notice of their concerned constituents.
- The directions contained in this circular have been issued under Section 10(4) and Section 11(1) of the Foreign Exchange Management Act 1999 (42 of 1999). Any contravention or non-observance of these directions is subject to the penalties prescribed under the Act.
Yours faithfully
K. J. Udeshi
Chief General Manager
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