An EEFC account opening letter is a formal request to your AD bank to open an Exchange Earners' Foreign Currency (EEFC) account, so you can keep some or all of your export receipts in foreign currency instead of converting them to rupees on arrival. The letter should name the currency, link the new account to your existing current account, state who will operate it, and come signed by your authorised signatories with any board resolution the bank requires. A sample follows, along with the questions to settle with your bank first.
Key takeaways
- An EEFC account holds foreign exchange earnings in foreign currency with an AD bank in India.
- The letter should specify currency (for example USD), account operation, linked rupee account and signatories.
- Banks set their own documentation; companies and LLPs commonly need a board or partners' resolution.
- RBI's rules decide what can be credited, how balances can be used and other conditions; confirm the current position with your bank.
- Export proceeds credited to EEFC still need to match your EDF invoices; keep the paper trail tidy.
Why exporters open an EEFC account
Service exporters with foreign-currency costs find EEFC useful. If you pay for overseas software subscriptions, cloud services, conferences or contractors abroad, holding USD lets you pay without converting to rupees and back again, saving one round of conversion margin.
Some exporters also use EEFC to choose when to convert, rather than accepting the rate on the day each payment lands. That brings currency risk as well as opportunity; decide your policy with your CA or finance head.
The exact rules, such as what kinds of receipts can be credited, permitted debits, interest and any conditions on balances, are set by RBI and applied by each bank. We are not summarising them here because they are technical and can change. Ask your bank for its current EEFC terms before you write.
Questions to settle with the bank first
| Question | Why ask it |
|---|---|
| Which currencies can the EEFC account be held in? | You may want USD only, or more than one |
| What documents do you need from us? | KYC, resolutions and forms vary by bank |
| Can incoming export remittances be split between EEFC and rupee accounts automatically? | Saves instructions on each credit |
| What debits are allowed? | Determines whether it suits your expense pattern |
| How will FIRAs or advices show EEFC credits? | Needed for EDF matching and GST evidence |
| Are there charges or minimum balances? | Avoid surprises |
What to include in the letter
- Your entity's full name, constitution (company, LLP, firm, proprietorship) and existing account number.
- A clear request to open an EEFC account, with the currency or currencies.
- Instruction on how incoming export proceeds should be credited (for example, a fixed percentage to EEFC, balance to the rupee current account), if your bank allows standing instructions.
- Names and designations of authorised signatories, and the mode of operation (singly, jointly).
- A list of enclosures.
- Signatures as per your existing mandate, on letterhead.
Sample letter
[On company letterhead]
Date: 26 September 2026
To, The Branch Manager, [Bank name], [Branch name and address]
Subject: Request to open an EEFC account in USD – linked to Current Account No. XXXXXXXX7788
Dear Sir/Madam,
We, Kaveri Cloud Services Private Limited, are exporters of IT services and maintain the above current account with your branch. We request you to open an Exchange Earners' Foreign Currency (EEFC) account in US Dollars in our name.
We request that, subject to applicable regulations, 40% of each inward export remittance received in USD be credited to the EEFC account and the balance converted and credited to our current account. Please let us know if any separate instruction is required for this arrangement.
The account will be operated jointly by any two of the following authorised signatories, as approved by our Board of Directors: Ms. Priya Nair (Director), Mr. Sunil Rao (Director) and Ms. Fatima Sheikh (Chief Financial Officer).
We enclose: (1) certified copy of the board resolution; (2) account opening form duly filled; (3) KYC documents as required by the bank.
Kindly confirm the account number once opened.
Yours faithfully, For Kaveri Cloud Services Private Limited
(Signature) Priya Nair, Director (Signature) Sunil Rao, Director
Adjust the currency, percentage and signatories to your situation. If your bank prefers its own form for the split instruction, use that alongside the letter.
Board resolution points
For a company, the resolution typically authorises opening the EEFC account, names the authorised signatories and sets the mode of operation. LLPs use a resolution of designated partners. Our board resolution for bank account template covers the usual clauses; ask your CS or CA to review the final wording.
How EEFC credits fit your EDF routine
The EDF records your export invoices; the EEFC account is simply where some of the proceeds land. A few practical points:
- When a client pays and part goes to EEFC, the full remittance still settles the invoice. Ask your bank how its FIRA or advice will show the split so you can match the full amount.
- Keep using one invoice reference across the EDF row, the remittance and your books.
- Small invoices up to ₹10 lakh can still be closed through your periodic realisation declaration, which our realisation declaration tool prepares.
A worked example
Kaveri Cloud Services invoices a US client USD 20,000 on 5 November 2026 and lists it on its November EDF. When the payment arrives on 2 December, USD 8,000 is credited to EEFC and USD 12,000 is converted to rupees. The bank's advice shows the full USD 20,000 remittance and the split. Kaveri's EDF register records the invoice as realised in full on 2 December, with the advice reference. Later that month, it pays a USD 3,500 cloud hosting bill directly from EEFC.
For a deeper look at the account itself, read our article on export proceeds in EEFC accounts.
This article is general information, not legal or tax advice. EEFC rules are set by RBI and applied by your bank, so confirm current terms before relying on any arrangement.
Frequently asked questions
What is an EEFC account opening letter?
It is a formal request to your AD bank to open an Exchange Earners' Foreign Currency account in your name. It specifies the currency, links the account to your existing rupee account, names the authorised signatories and lists the documents enclosed.
Who can open an EEFC account?
EEFC accounts are meant for residents who earn foreign exchange, such as exporters of goods and services. Eligibility conditions and documentation are set by RBI and your bank, so check with your bank before applying.
Does a company need a board resolution to open an EEFC account?
Most banks ask for a board resolution authorising the account and naming signatories, much as they do for other accounts. LLPs usually provide a resolution of designated partners. Your bank will confirm what it needs.
Can I keep all my export proceeds in the EEFC account?
How much can be credited and retained depends on RBI's current rules and your bank's terms. Ask your bank what percentage of export proceeds may be credited and whether a standing split instruction is possible.
Does money credited to EEFC count as realised for the EDF?
The remittance reaches your AD bank in India either way, and the full amount settles the invoice. Ask your bank how its advice will show the EEFC portion so you can match the complete amount against the EDF invoice.
Bottom line
A clear, signed letter and the right resolution get an EEFC account opened without back-and-forth. Draft yours with our EEFC account request letter and confirm the bank's current terms before your first credit.
This guide is general information for Indian businesses, not legal or tax advice. Rules and bank processes change — confirm specifics with your AD bank or chartered accountant.