EEFC Account in India: A Comprehensive Guide for Foreign Earnings

Living in India and earning in another currency? You have probably realized the value of keeping your earnings in foreign currency to pay for your overseas expenses. Instead of paying for FX conversion twice, one can open an EEFC (Exchange Earners’ Foreign Currency) account with an Indian bank.

The Reserve Bank of India made amendments to the Foreign Exchange Management Act, 1999, allowing “opening, holding, and maintaining” Foreign Currency Accounts in India in May 2000. The regulations came into force a month later. 

What is an EEFC account?

An EEFC account is an account maintained in foreign currency in India. Those based in India, but earn in foreign currency can open an EEFC account. Only an authorised dealer can open and maintain an EEFC account for you. An authorised dealer is a bank authorised to deal in foreign exchange. The authorised dealer can be private or state-run.