Module: General Practice
Q19: Regarding the Exchange Earners’ Foreign Currency (EEFC) Account, which of the following statements is INCORRECT?
✅ Correct Answer: D
The "Next Month" Rule: Option A & B are Correct: EEFC accounts are non-interest bearing and allow 100% retention of earnings.
Option D is INCORRECT: You cannot hold the funds indefinitely.
The sum total of all credits during a calendar month must be converted into Rupees on or before the last day of the succeeding calendar month, after adjusting for utilized funds (payments). Note: The 2025 Amendment regarding "3 months retention" applies specifically to accounts in IFSC (International Financial Services Centres). For standard EEFC accounts in domestic India, the "End of Next Month" conversion rule generally persists to prevent hoarding.
Option D is INCORRECT: You cannot hold the funds indefinitely.
The sum total of all credits during a calendar month must be converted into Rupees on or before the last day of the succeeding calendar month, after adjusting for utilized funds (payments). Note: The 2025 Amendment regarding "3 months retention" applies specifically to accounts in IFSC (International Financial Services Centres). For standard EEFC accounts in domestic India, the "End of Next Month" conversion rule generally persists to prevent hoarding.