Master Direction - Deposits and Accounts Flashcards
Foreign Currency Accounts means an account held or maintained in currency other than the currency of…………………
India or Nepal or Bhutan
What is EEFC?
It is an Account to received funds from various activities like trade, earnings including director’s fees, consultancy fees, lecture fees, honorarium. Basically, it is for the earnings earned by residents as the name suggest.
……… percent of the foreign exchange earnings by way of inward remittance through normal banking channel can be received in EEFC account.
100
EEFC account is interest bearing or not
Not interest bearing.
What is RFC Account?
RFC Account is to bring in the money earned by an individual which he had earned while he was NRI and now he has become resident. The Account is free from all restrictions regarding utilisation of foreign currency balances outside India. The balances in NRE/ FCNR (B) accounts of an NRI can be transferred to this account the residential status changes. The account can be operated jointly with resident relatively on ‘Former or Survivor Basis’ i.e. the relative cannot operate during the lifetime of the first account holder.
What is Resident Foreign Currency (Domestic) Account?
RFC (D) Account this account is maintained by a resident individual to keep the foreign exchange he has earned incidental to his any visit to a foreign country, to keep his unutilised forex etc. it is like an account for residents who are not dealing much in forex as EEFC but still have need of foreign Currency Account. Like, EEFC the amount needs to be converted to INR on or before the last day of the succeeding calendar month.
What is DDA scheme?
Firms and companies which comply with the eligibility criteria stipulated in the Foreign Trade Policy of the Government of India may open DDA accounts. Basically, it is related to trade in rough, cut and polished diamonds. The firms or companies shall have an average annual turnover of Rs. 3 crores or above during the preceding three licensing years. Upto 5 DDA account can be opened by a firm/ company.
Project Offices of foreign companies can open non-interest bearing one or more foreign currency accounts in India for the project to be executed in India. Such accounts will be subject to the following conditions:
1) The Project Office has been established in India, with the general/ specific permission of Reserve Bank, having the requisite approval from the concerned Project Sanctioning Authority, 2) The contract under which the project has been sanctioned, specifically provides for payment in foreign currency, 3) Each Project has only one Foreign Currency Account.
An Indian company receiving foreign investment under FDI route may open and maintain a foreign currency account with an Authorized Dealer in India provided the Indian investee company has impending foreign currency expenditure and the account is closed immediately after the requirements are completed or within …………………… from the date of opening of such account, whichever is earlier
6 months
