The Reserve Bank of India (RBI) directed exporters to convert 50% their foreign currency held in Exchange Earner’s Foreign Currency (EEFC) accounts into rupee within a fortnight to curb the currency’s slide against the dollar.
India’s rupee hit a record close of 53.82 against the dollar on Wednesday. An exchange earner is eligible to retain 50% of future Forex earnings in non-interest bearing EEFC accounts. The balance shall be surrendered for conversion into rupee.
The central bank also said that exporters will be permitted to access the forex market for purchasing foreign exchange only after fully utilizing the available balances in their EEFC accounts. These provisions also apply to a Resident Foreign Currency Account (RFC) and a Diamond Dollar Account (DDA).
