INTRODUCTION

ICICI Bank (Industrial Credit and Investment Corporation of India) is

an Indian multinational banking and financial services company headquartered
in Mumbai, Maharashtra, India, with its registered office in Vadodara. In 2014, it
was the second largest bank in India in terms of assets and third in term of market
capitalisation. It offers a wide range of banking products and financial services for
corporate and retail customers through a variety of delivery channels and
specialised subsidiaries in the areas of investment banking, life, non-life
insurance, venture capital and asset management. The bank has a network of 4,450
branche and 14,404 ATMs[5] in India, and has a presence in 19 countries including
India.

The bank has subsidiaries in the United Kingdom and Canada; branches in United
States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar, Oman, Dubai
International Finance Centre, China and South Africa; and representative offices
in United Arab Emirates, Bangladesh, Malaysia and Indonesia. The company's UK
subsidiary has also established branches in Belgium and Germany.

Exchange earners’ foreign currency account (EEFC) is an account maintained in

foreign currency with an authorised dealer i.e. a bank dealing in foreign
exchange. It is a facility provided to the foreign exchange earners, including
exporters, to credit 100% of their foreign exchange earnings to the account, so
that the account holders do not have to convert foreign exchange into rupees and
vice versa, thereby minimising the transaction costs.

All categories of foreign exchange earners, such as individuals, companies, etc.

who are resident in India, can open EEFC accounts. Special economic zone
(SEZ) units cannot open EEFC accounts. But, a unit located in an SEZ can open
a foreign currency account with an authorised dealer in India subject to certain
conditions. SEZ developers can open EEFC Accounts.

An EEFC account can be held only in the form of a current account. Cheque
facility is available for operation of the EEFC account. No interest is payable on
EEFC accounts.

Up to 100% foreign exchange earnings can be credited to the EEFC account.

 OBJECTIVES

 To understand innovative product introduce in banking industry

 To study theorciolly of product
 To study impact of product in banking secanrio

NATURE OF STUDY

1. The project is based on secondary data

2. All the data collected through website to understand deeply of product
3. Some of questionnaire is collected from current affairs of RBI
 PROVISION OF THE PRODUCT

Permissible credits in EEFC Accounts –

i. Inward remittance through normal banking channels, other than remittances

received on account of foreign currency loan or investment received from
abroad or received for meeting specific obligations by the account holder;

ii. Payments received in foreign exchange by a 100 per cent Export Oriented
Unit or a unit in (a) Export Processing Zone or (b) Software Technology
Park or (c) Electronic Hardware Technology Park for supply of goods to
similar such units or to a unit in Domestic Tariff Area;

iii. Payments received in foreign exchange by a unit in the Domestic Tariff Area
for supply of goods to a unit in the Special Economic Zone (SEZ);

iv. Payment received by an exporter from an account maintained with an

authorised dealer for the purpose of counter trade. (Counter trade is an
arrangement involving adjustment of value of goods imported into India
against value of goods exported from India in terms of the Reserve Bank
guidelines);

v. Advance remittance received by an exporter towards export of goods or

services;

vi. Payment received for export of goods and services from India, out of funds
representing repayment of State Credit in U.S. Dollar held in the account of
Bank for Foreign Economic Affairs, Moscow, with an authorised dealer in
India;
vii. Professional earnings including directors fees, consultancy fees, lecture fees,
honorarium and similar other earnings received by a professional by
rendering services in his individual capacity;

viii. Re-credit of unutilised foreign currency earlier withdrawn from the account;

ix. Amount representing repayment by the account holder's importer customer,

of loan/advances granted, to the exporter holding such account; and

x. The disinvestment proceeds received by the resident account holder on

conversion of shares held by him to ADRs/GDRs under the Sponsored
ADR/GDR Scheme approved by the Foreign Investment Promotion Board
of the Government of India.

Permissible debits in EEFC Accounts –

i. Payment outside India towards a permissible current account transaction [in
accordance to the provisions of the Foreign Exchange Management (Current
Account Transactions) Rules, 2000] and permissible capital account
transaction [in accordance to the Foreign Exchange Management
(Permissible Capital Account Transactions) Regulations, 2000].

ii. Payment in foreign exchange towards cost of goods purchased from a 100
percent Export Oriented Unit or a Unit in (a) Export Processing Zone or (b)
Software Technology Park or (c) Electronic Hardware Technology Park

iii. Payment of customs duty in accordance with the provisions of the Foreign
Trade Policy of the Central Government for the time being in force.

iv. Trade related loans/advances, extended by an exporter holding such account

to his importer customer outside India, subject to compliance with the
Foreign Exchange Management (Borrowing and Lending in Foreign
Exchange) Regulations, 2000.
 v. Payment in foreign exchange to a person resident in India for supply of
goods/services including payments for airfare and hotel expenditure.

BENEFITS OF THE PRODUCTS

 Foreign Cheque Collection

Leave aside your worries when it comes to Foreign Cheques. ICICI Banks assures
a speedy credit thanks to a wide network of correspondent banks.

 Foreign Currency Drafts

Get Foreign Currency Drafts in USD, GBP and Euro with your EEFC Account.

 Internet Banking

Access your Account regardless of the place you are in. Just log in with your User
ID and password and experience hassle-free banking in a few clicks.

 More Benefits

Get monthly account statements for free and manage outward remittances with
ease, subject to FEMA Regulations 2000 governing EEFC Account and the
Foreign Exchange Management Act, 1999.
OTHER BENEFITS
 ATM/debit card
 Cheque book facility
 Internet banking/phone banking facility

RESTRICTION OF THE PRODUCT

Restriction on withdrawal in rupees of funds held in an EEFC account –

 There is no restriction on withdrawal in Rupees of funds held in an EEFC

account. However, the amount withdrawn in Rupees shall not be eligible for
conversion into foreign currency and for re-credit to the account

 Restrictions on accessing the forex market by the EEFC account holder –

EEFC account holders are permitted to access the forex market for
purchasing foreign exchange only after utilizing fully the available balances
in the EEFC accounts . Accordingly ADs are required to obtain a
declaration, while selling foreign exchange to their constituents.
 CURRENT AFFAIRS ON EEFC BY RBI

Q 1. What is an EEFC Account and what are its benefits?

Ans. Exchange Earners' Foreign Currency Account (EEFC) is an account

maintained in foreign currency with an Authorised Dealer Category - I bank i.e. a
bank authorized to deal in foreign exchange. It is a facility provided to the foreign
exchange earners, including exporters, to credit 100 per cent of their foreign
exchange earnings to the account, so that the account holders do not have to
convert foreign exchange into Rupees and vice versa, thereby minimizing the
transaction costs.

Q 2. Who can open an EEFC account?

Ans. All categories of foreign exchange earners, such as individuals, companies,

etc., who are resident in India, may open EEFC accounts.

Q 3. What are the different types of EEFC accounts? Can interest be paid on these
accounts?

Ans. An EEFC account can be held only in the form of a current account. No
interest is payable on EEFC accounts.

Q 4. How much of one’s foreign exchange earnings can be credited into an EEFC
account?

Ans. 100% foreign exchange earnings can be credited to the EEFC account subject
to the condition that the sum total of the accruals in the account during a calendar
month should be converted into Rupees on or before the last day of the succeeding
calendar month after adjusting for utilization of the balances for approved purposes
or forward commitments.

Q 5. Whether EEFC Account can be opened by Special Economic Zone (SEZ)

Units?

Ans. No, SEZ Units cannot open EEFC Accounts. However, a unit located in a
Special Economic Zone can open a Foreign Currency Account with an Authorised
Dealer in India subject to conditions stipulated in Regulation 4 (D) of Foreign
Exchange Management (Foreign Currency Accounts by a person Resident in India)
Regulations dated January 21, 2016.

Q 6. Is there any Cheque facility available?

Ans. Yes, Cheque facility is available for operation of the EEFC account.

Q 10. Is there any restriction on withdrawal in rupees of funds held in an EEFC

account?

Ans. No, there is no restriction on withdrawal in Rupees of funds held in an EEFC

account. However, the amount withdrawn in Rupees shall not be eligible for
conversion into foreign currency and for re-credit to the account.

Q. 11. Whether the EEFC balances can be covered against exchange risk?

Ans. Yes, the EEFC account balances can be hedged. The balances in the account
sold forward by the account holders have to remain earmarked for delivery.
However, the contracts can be rolled over.
 Q. 12. Whether EEFC Account is permitted to be held jointly with a resident
relative?

Ans : Resident individuals are permitted to include resident relative(s) [as defined
in section 2(77) of the Companies Act, 2013] as joint holder(s) in their EEFC
account on ‘former or survivor’ basis.

DOCUMENTATION

The documents / information required to be scanned / couriered to COPS are as

below:

 Completely filled-in & signed EEFC Account Opening form.

 Constitution Document like the board resolution, partnership letter, proprietorship
letter etc authorising the EEFC account opening. The Board Resolution /
Partnership letter / propreitorship letter should mention the currency in which the
account is to be opened.
 The proof of status (i.e. whether the unit is located in SEZ, STP or EHTP etc.)
should accompany the AOF and other documents being sent to COPS.
 Importer- Exporter Code if applicable.
 Nomination form, if the customer has given the consent for the same, Nomination
form is applicable only to Individual and Sole Proprietors
 Proof of PAN/ Form 60.
 NOC from the Lending Bank(s) extending credit facility to the entity / firm, if
applicable

Individuals
 Identity proof of all authorised signatories.
 Address proof of all authorised signatories.

Partnership Firms

 Partnership deed duly stamped & signed by all Partners.

 Identity proof for all authorised signatories.
 Partnership letter on the Firm's letterhead signed by all partners In Bank's Format.

Private and Public Limited Companies

 Board Resolution in Bank's Format ( Signed by two directors/ company secretary).

 Latest list of all Directors with their Addresses duly dated & signed by Company
Secretary/ director(s).
 Identity proof of all authorised signatories & certifying director.

Trusts/ Clubs/ Society / Associations

 Identity proof of all authorised signatories.

 Certified copy of Resolution to open the account signed by Managing Trustee/
Secretary.
 List of all office bearers/ trustees with their addresses signed by Managing Trustee/
Secretary/chairperson/two authorised signatories.

Hindu Undivided Family (HUF)

 HUF letter (as per Bank's format) signed by Karta and all major co-parceners. Data
pertaining to minor co-parceners and female members should be recorded.
 Photograph & Specimen signatures of the Karta and all co-parceners (Female
member cannot be included as a Co-parcencer).
 Identity proof of Karta.
 Address proof in the name of the HUF / Karta.

Proprietorship Firms

 Identity proof of proprietor (Authorised Signatory(ies))

 Proprietorship Letter on the Letterhead in Bank's Format
 LEARNING OUTCOME

From the project I learnt that eefc account provide exporter

100 percent of foreign exchange to the account,so that account holder do not need
to convert into rupees and vice versa

It also given all those facility to account holder to function of their

account but internet banking facility is not provide to joint account holder because
of conflict of interest in both parties
 CONCLUSION

I would like like to thank prof. rajshiri deshpande

for giving such wonderful opportunity to study theorytical of banking product
which would help to our current affairs in banking sceanario

I would like to conclude eefc account as a account

which provide every individual,firm or institution a good banking facility than
other account.i hope with this account people need not to ping pong around
different bank and no need to convert their rupess and vice versa with this account
automically money converted
 REFERENCE

 WWW.ICICI.COM
 OFFICIAL SITE OF RBI
 IIFL UNIVERSITY SITE .COM
 MULUND COLLEGE OF COMMERCE

ACAADEMIC YEAR

2016-17

ENIGANTHI WILSON RAJESH

ROLL NO: 1610616

B.COM [BANKING & INSURANCE]

S.Y.BCBI SEMESTER IV

INNOVATIONS IN BANKING & INSURANCE

ASSIGNMENT

PROF. RAJSHREE DESHPANDE

 INDEX

SR.NO TOPICS PAGE NO.

1 INTRODUCTION 1-2
2 OBJECTIVES 3
3 NATURE OF STUDY 3
4 PROVISIONS 4-6
5 BENEFITS 6-7
6 RESTRICTIONS 7-10
7 DOCUMENTATION 10-12
8 CONCLUSION 13
9 LEARNING OUTCOMES 14

10 REFERENCES 15