Dated 27th July 2013
Reserve Bank of India vide its notification no. RBI/2012-13/390 dated January 22, 2013 issued toAll Category – I Authorized Dealer Banks notified the following:
Reference to A.P. (DIR Series) Circulars Nos. 15, 124, 128, 8 and 12 dated November 30, 2006, May 10, 2012, May 16, 2012, July 18, 2012 and July 31, 2012 respectively, in terms of which all the foreign exchange earners were permitted to retain their foreign exchange earnings in EEFC account subject to certain conditions with an Authorized Dealer (AD) Category – I bank in India.
Keeping in view the operational difficulties faced by the account holders and the Authorized Dealer banks, as a measure of rationalization, it has been decided to dispense with the stipulation made in A.P. (DIR Series) Circular No. 124 dated May 10, 2012, that EEFC account holders henceforth will be permitted to access the forex market for purchasing foreign exchange only after utilizing fully the available balances in the EEFC accounts.
The above instructions would also apply to the RFC (Domestic) and Diamond Dollar accounts. All other terms and conditions stipulated in the Circulars referred to above remain unchanged.
SOURCE: RESERVE BANK OF INDIA