A.P.(DIR Series) Circular No.26/2002, Dt. 1/3/2002

External Commercial Borrowings (ECBs) -Prepayment out of the EEFC Accounts

To
All Authorised Dealers in Foreign Exchange

Sirs/Madam,

External Commercial Borrowings (ECBs) -Prepayment out of the EEFC Accounts

Authorised Dealers are aware that ECBs can be prepaid by corporate borrowers to the extent of the balances in their Exchange Earner's Foreign Currency (EEFC) accounts, with the approval of Reserve Bank. Authorised Dealers are also aware that in terms of Notification No.FEMA 30/2000/RB dated 17th November 2000, corporates who are export oriented units and others can credit up to 70% and 50% of their foreign exchange earnings to their EEFC accounts, respectively.

2. To enable the corporates to take advantage of lower interest rates and prepay the ECBs it has now been decided to allow them to credit higher than above percentages of export proceeds to their EEFC account on a case by case basis. Application for the purpose may be made to the Chief General Manager, Exchange Control department, Reserve Bank of India, Central Office, Central Office Building, Post Box No. 1055, Mumbai-400 001. A proforma of the application is annexed.

3. Authorised Dealers may bring the contents of this circular to the notice of their concerned constituents.

4. The directions contained in this circular have been issued under Section 10(4) and Section 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999).

Yours faithfully,

Grace Koshie
Chief General Manager

Application for prepayment of outstanding

ECB out EEFC Account

I)	Name and address of the Borrower
II)	Name and address of the Lender
III)	Details of Loan a) Approval number and date b) GOI/ RBI loan key number c) RBI Registration Number d) Purpose of ECB/Utilisation certified by C.A. e) Amount of ECB f) Amount drawn g) Amount outstanding h) Maturity of Loan / Residual maturity of loan
IV)	Details of the current balance in the EEFC Account
V)	Details of export bills to be realised as on date
VI)	Percentage of export proceeds proposed to be credited to the EEFC Account
VII)	ECB-2 statement till __________________ month have been submitted to the ______________office of the Reserve Bank India

Date:

Stamp

Signature of the authorised official of the company

We have verified the above particulars and have found the same to be in order.

Date:

Stamp

Signature of the authorised official Name of the Bank/ branch AD Code No.

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