EEFC Accounts: How Exporters Can Save on Foreign Exchange Fees
An introduction to Exchange Earners Foreign Currency (EEFC) accounts and how they shield your business from exchange rate fluctuations.
Benefits of an EEFC Account
An EEFC account allows exporters to retain 100% of their foreign earnings in foreign currency with an authorized bank in India. This avoids immediate conversion fees and allows you to make foreign payments for imports or SaaS subscriptions directly from the account.
Eligible Deposits
All foreign currency payments earned through export services, software consulting, or trade commissions can be deposited into the EEFC account. However, note that funds held inside this account do not earn interest under current banking regulations.
CA Amit Sharma
Verified Advisory LeadAmit is a Chartered Accountant (ICAI membership #409214) and FEMA compliance advisor with over 8 years of experience advising technology startups, digital marketing agencies, and remote professionals on zero-rated GST exports, DTAA declarations, and RBI inward remittance audits.
Disclaimer: The information provided above is for educational purposes only and does not constitute formal legal or financial advice. Please verify details using official circulars issued by the Central Board of Indirect Taxes & Customs (CBIC) and RBI.