Eefc funds utilisation for foreign travel

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 August 2012 We are a software exports firms, having a EEFC account for receiving funds from our american clients.

Our employee is traveling on a 3 week trip to US. Earlier we used to purchase US dollars from our current account in ICICI bank and pay the currency purchase charges for it.

Now, Since we have an EEFC account and have 10,000 USD balance in it, we asked ICICI to transfer 5000 USD to a travel card, so that the employee can use it while in America for business expenses.

ICICI refused ..saying that travel card or currency notes cannot be purchased directly from EEFC account's funds. They said that we can to convert from EEFC to Indian rupees, and then purchase US Dollars from indian rupees after paying commission for purchasing the currency.

IS ICICI correct to do so? Do other banks allow funds to be transferred directly from EEFC to travel card?

The RBI says that EEFC funds can be used for foreign travel and hotel expenses

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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20 August 2012 Authorized dealers may release foreign exchange upto USD 100,000 or its equivalent to resident Indians for medical treatment abroad on self declaration basis of essential details, without insisting on any estimate from a hospital/doctor in India/abroad. A person visiting abroad for medical treatment can obtain foreign exchange exceeding the above limit, provided the request is supported by an estimate from a hospital/doctor in India/abroad.This exchange is to meet the expenses involved in treatment and in addition to the amount referred to in paragraph 1 above of below mentioned link

http://www.rbi.org.in/scripts/faqforex.aspx

must read:

http://www.ptcinfo.org/eurogiro/rbi_master_circular_dt_010711_upto_300612.pdf

Querist : Anonymous

Querist : Anonymous (Querist)

21 August 2012 Hi,

Thanks for the reply...but is does not address the question at all. The question is about travel expenses for business...and you have given some details about foreign expenditure on medical travel.

Pls donot trivialise this forum by irrelevant answers

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RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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21 August 2012 OK.........if you thinks that the reply given by me is irrelevant now option is for RTI INFORMATION FROM THE RBI.