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    Question

    The amount credited in EEFC a/c on March 04' 2024, and

    remaining unutilized would be mandatorily converted to INR on ___
    A 31st March 2024 Correct Answer Incorrect Answer
    B 1st April 2024 Correct Answer Incorrect Answer
    C 30th April 2024 Correct Answer Incorrect Answer
    D 4th April 2024 Correct Answer Incorrect Answer
    E 29th March 2024 Correct Answer Incorrect Answer

    Solution

    EEFC is the Exchange Earners’ Foreign Currency Account. 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. In accordance with Reserve Bank of India's circular no. A. P. (DIR Series) Circular No. 12 dated 31st of July 2012, the balances outstanding in all EEFC / Diamond Dollar Account (DDA) and RFC (D) accounts as on last day of a Current month, shall be converted into Rupees by the Bank on the last working day of the succeeding month, if such balance is not utilised by the account holder before the last day of succeeding month. Such mandatory conversion by the bank on the last working day of the succeeding month will be done at the prevailing TT buying card rate.

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