Evaluate the following four statements regarding foreign exchange accounts and remittance guidelines under FEMA regulations: Statement 1: The Exchange Earners Foreign Currency (EEFC) account is a non-interest bearing current account where exporters can credit up to 100% of their earnings. Accruals during a calendar month must be converted to INR by the last day of the succeeding month if not utilized. Statement 2: The Resident Foreign Currency (RFC) account is designed for returning NRIs for permanent settlement. It can be maintained as savings, current, or term deposits, earns interest, and funds are freely repatriable. Statement 3: The Liberalised Remittance Scheme (LRS) allows resident individuals to remit up to USD 250,000 per financial year for permitted current/capital account transactions. It prohibits margin trading and lottery purchases. Statement 4: The Resident Foreign Currency (Domestic) account allows residents to keep small amounts of foreign currency acquired from specified sources in a non-interest bearing current account, up to mandated holding limits. Which of the following evaluations is accurate?

Question

Economics · Economy

Verified Solution4 OptionsUpdated: October 2026👁️1 View

Correct answer

All statements from Statement 1 to Statement 4 are correct according to FEMA guidelines.

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Answer 1

Only Statement 1 and Statement 4 are correct while the others contain regulatory errors.

Answer 2

All statements from Statement 1 to Statement 4 are correct according to FEMA guidelines.

Answer 3

Statement 2, Statement 3, and Statement 4 are correct while Statement 1 is incorrect.

Answer 4

Statement 1, Statement 2, and Statement 3 are correct while Statement 4 is incorrect.

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