RBI relaxes ceiling limit under EEFC a/c

In a significant move the Reserve Bank of India has removed the credit ceiling limit granted to exporters under the Exchange Earners Foreign Currency (EEFC) scheme.

As per the current regulations exporters were given trade related loans/advances not exceeding $3 million from their EEFC account to the overseas importer customer.

Now as per the new regulation the ceiling of USD 3 million has been removed. The authorised dealers will now permit exporters to extend trade related loans/advances to overseas importers out of their EEFC balances without any ceiling. This relaxation shall be effective upto June 30, 2003, subject to review.