## How to open a foreign currency account in India "Foreign currency account" means two different things, and most freelancers who search for it want the second one. The first is an [EEFC account](https://www.rbi.org.in/commonperson/english/scripts/FAQs.aspx?Id=11) with your bank, where you hold dollars, euros or pounds for a short while before converting. The second is a receiving account on a payment platform, where your client pays a local transfer in their currency and you get INR in your Indian bank account. This guide explains both, who each one is for, and how to open them. ## Which one do you need? Ask one question. Do you need to hold foreign currency, or do you just need to get paid well? * **You pay foreign vendors regularly:** overseas contractors, a US-based tool stack billed in dollars, ad spend in USD. Holding some of your earnings in that currency saves you converting twice. That is an EEFC account. * **You bill clients and want INR:** which is most freelancers, agencies and small studios. You want the full amount to arrive, at the real rate, with the paperwork done. That is a receiving account. Many exporters use both. A receiving account for collecting client payments, and an EEFC account for the slice they spend abroad. ## Route 1\. EEFC account with your bank EEFC stands for Exchange Earners' Foreign Currency account. It is a current account in foreign currency, offered by AD Category I banks, for anyone resident in India who earns foreign exchange. Individuals qualify. Professional fees received by an individual are a permitted credit. ### What it does * **Holds foreign currency:** USD, EUR, GBP and others, depending on the bank. * **Takes 100% of your export earnings:** subject to the conversion rule below. * **Lets you pay abroad from it:** vendors, subscriptions, travel, imports, any permitted current account payment. * **Pays no interest:** by rule, not by bank policy. Whatever you credit to the account in a calendar month has to be converted to rupees by the last day of the following month, after adjusting for what you have already spent from it or committed forward. Money that lands in October must be converted by 30 November. So an EEFC account is a short-term parking spot, not a dollar savings account. If you were hoping to sit on USD for a year waiting for a better rate, this is not the tool. ### How to open one 1. **Pick an AD Category I bank:** usually the bank where you already hold your current account. 2. **Fill the application and the forex earnings declaration:** the bank wants to know the source of the foreign currency. 3. **Submit documents:** PAN, address proof, proof of business or a service contract, and a proprietorship declaration or board resolution depending on your setup. 4. **Activate and link:** the account opens with no initial deposit and sits beside your INR current account. Takes a few working days. Some banks charge a maintenance fee, most do not. Your overseas client still pays by SWIFT wire into it, so the wire charges and the intermediary bank fee still apply on the way in. ## Route 2\. Receiving account on a platform A receiving account gives you local bank details in your client's country. A US account number and routing number, a European IBAN, a UK sort code, a UAE account. Your client pays a domestic transfer. The platform's licensed partner receives it, converts at the mid-market rate, and settles INR into your own Indian bank account. You never hold the foreign currency. That is the point. No conversion deadline, no SWIFT charges, no spread. ### How to open one 1. **Sign up and pick your entity type:** individual, proprietorship, LLP or private limited. 2. **Complete KYC:** PAN, Aadhaar or passport, and your Indian bank details. About ten minutes. 3. **Pick your currencies:** with DashX that is USD, EUR, GBP and AED. 4. **Put the details on your invoice:** and your client pays like a local. Most accounts are active the same day. ### What it costs With [DashX](https://dashx.xyz/), nothing to open and nothing monthly. One flat fee of 0.35% on conversion at the mid-market rate. A FIRA is issued through the AD bank for every payment, at no charge. ## Bank route vs platform route | | EEFC account | Receiving account | | :---- | :---- | :---- | | Main job | Hold foreign currency briefly | Get paid and receive INR | | Who opens it | AD Category I bank | Payment platform through licensed partners like DashX | | Setup time | A few working days | Same day | | Holds foreign currency | Yes, with the monthly conversion rule | No, settles to your Indian account | | How the client pays | SWIFT wire, with wire and intermediary fees | Local transfer, usually free for them | | Exchange rate | Your bank's rate when you convert | Mid-market | | FIRA | On request, sometimes charged | Automatic | | Best for | Exporters who spend abroad | Freelancers and agencies collecting foreign client payments | ## Documents you will need for either * **Identity and address:** PAN, plus Aadhaar or passport. * **Business proof:** GST registration if you have it, a service contract or invoice if you do not. IEC is for goods exporters and is not needed for services. * **Authorisation:** proprietorship declaration, partnership letter or board resolution, depending on your entity. * **Indian bank details:** where INR will settle. ## Compliance on both routes Both routes are [FEMA](https://dor.gov.in/foreign-exchange-management-act-1999-42-1999) compliant when they run through an AD Category I bank. What matters is the paperwork that comes with each payment. * **Purpose code:** every inward payment carries one. P0802 for software, P1006 for consulting, P1007 for marketing. * **FIRA:** proof the payment landed. On an EEFC account you ask the bank. On a DashX receiving account it is issued automatically. * **Monthly Export Declaration Form:** from 1 October 2026, service exporters file one EDF a month with their AD bank. Your FIRA is what the bank matches against it. Same obligation on both routes. * **Tax:** income is income whichever account it lands in. The EEFC account changes when you convert, not what you owe. Talk to your CA. ## Quick checks before you apply * **Do you actually spend abroad?** If not, skip the EEFC account. The conversion rule makes it pointless for someone who converts everything anyway. * **Which currencies do your clients pay in?** Open receiving details in those, not all of them. * **Which bank will settle your payments?** That is your AD bank for the EDF, and it is not always the one on your FIRA. * **Is every payment generating a FIRA?** If a client pays through a route that does not, fix that first. ## How DashX helps DashX is the second route. Local account details in USD, EUR, GBP and AED, one flat fee of 0.35%, mid-market rate, FIRA on every payment, and INR in your own bank account within 24 hours\* on business days. DashX operates through RBI-authorised AD Category I banks (JP Morgan and HDFC) and PA-CB licensed partners, and does not hold your funds. If you also need an EEFC account, open it with your bank and use both. They do different jobs. Get paid in your client's currency and receive INR, with the paperwork done. [Try DashX](https://gateway.dashx.xyz/login?redirect=%2F).