The Hidden Cost Indian Exporters Have Stopped Noticing
Here’s a scenario that plays out thousands of times a day across Indian businesses.
A SaaS company accepts a payment in USD from a US customer. The money converts to INR on settlement. Then, when it’s time to pay a foreign vendor or overseas contractor, it converts back to USD. Two conversions. Each one costs 2–3%. On ₹10 crore in monthly international volume, that’s ₹20–30 lakh lost every single month, not to taxes, not to fraud, but to avoidable conversion fees baked into how settlements work.
There’s a second problem too. You receive EUR from a European customer. By the time it converts and settles, the rupee has moved. You had no control over the timing. The currency risk wasn’t yours to take, but you bore it anyway.
Razorpay has changed this. Indian merchants can now receive international card payment settlements directly into their EEFC account, in the original transaction currency, with zero INR conversion, across five currencies: USD, EUR, GBP, AED, and SGD.
What Is an EEFC Account?
An EEFC (Exchange Earners’ Foreign Currency) account is a foreign currency account held with an RBI-authorised bank. It allows businesses that earn foreign exchange, exporters, SaaS platforms, travel companies, service exporters, and others, to credit 100% of their foreign currency receipts directly into the account, without converting to INR.
Eligible credits include inward remittances, export proceeds, professional service fees, and now, international card payment settlements.
EEFC accounts are maintained as current accounts, which means:
- No interest is payable on balances held
- No interest cost to the account holder
- Funds can be deployed for outward remittances, trade payments, vendor payouts, and international settlements, in the original currency, without intermediate conversion
Why EEFC Accounts Matter for Indian Exporters and Online Merchants
For any merchant with international revenue and international expenses, the traditional settlement structure creates a silent drag on margins.
The double conversion problem: Foreign currency converts to INR on receipt → converts back to foreign currency for vendor payments or overseas payroll. Each leg costs 2–3%.
The timing risk problem: INR/USD rates on the day your payment settles may be very different from rates when you actually need the foreign currency. You absorb that variance every time.
The compliance overhead problem: Managing foreign inward remittance documentation, FIRS certificates, and recon across multiple banks adds operational load.
EEFC accounts solve all three, but only if your payment gateway supports direct settlement into them.
Razorpay EEFC Settlement: What’s New
Razorpay, in partnership with RBL Bank, now supports direct multi-currency EEFC settlements for international card payments. This is a meaningful upgrade from the original EEFC offering, which was limited to USD settlements only.
Supported currencies
USD, EUR, GBP, AED, and SGD settle directly into your EEFC account in their original currency. All other currencies continue to settle in INR.
Key features
Zero double conversion. Settlement goes from your customer’s card → directly into your EEFC account in the original currency. No INR leg at any point. This alone saves 2–3% per transaction on eligible currencies.
No new merchant account required. This is native to Razorpay. Same dashboard, same success rate engine, same reconciliation flow. Merchants don’t need to set up a separate account or change their integration.
Automatic FIRS delivery. Foreign Inward Remittance Statements (FIRS) certificates are automatically delivered to your Razorpay dashboard by RBL Bank, no manual follow-up with your bank.
FX-neutral refunds and chargebacks. Refunds and chargebacks are managed in the original transaction currency. No FX impact on dispute resolution.
Existing settlement cycle. Settlements follow your existing international card cycle, no additional delay introduced.
Benefits of EEFC Settlement: A Closer Look
1. Hard cost savings
At scale, the savings are material. A merchant doing ₹10 crore/month in international card volume saves ₹20–30 lakh monthly just by eliminating the INR conversion roundtrip. That’s margin recovery, not optimisation.
2. Currency risk mitigation
Holding balances in foreign currency removes exposure to INR rate movements between receipt and payout. EEFC balances can also be hedged via forward contracts with your bank for additional protection on large positions.
3. Simpler international treasury
For businesses with foreign currency expenses, overseas vendors, SaaS tools, global payroll, platform fees, EEFC settlement means funds are available in the right currency when you need them. No conversion friction. No timing exposure.
4. Compliance built in
FIRS certificates are auto-delivered to your Razorpay dashboard. This matters for businesses that need to demonstrate foreign exchange inflows for regulatory compliance, export benefit schemes (like SEIS under FTP), or audits.
Who Should Use Razorpay’s EEFC Settlement?
This feature is most valuable for:
- SaaS and software companies with international subscriptions and overseas infrastructure costs
- Travel and hospitality businesses receiving payments in foreign currency and paying international vendors
- Export-oriented e-commerce brands selling to global customers
- Professional services firms (consulting, design, engineering) billing international clients
- EdTech and media platforms with global subscriber bases
If your business earns in foreign currency and spends in foreign currency, every conversion leg is a cost you shouldn’t be paying.
How to Get Started
To activate EEFC settlement on your Razorpay account:
- Ensure you have an active EEFC account with an RBI-authorised bank
- Speak to your Razorpay account manager, or reach out via Razorpay Support
- Once activated, settlements in USD, EUR, GBP, AED, and SGD will flow directly into your EEFC account
→ Explore International Payments on Razorpay
Final Thought
For Indian businesses operating globally, the question was never whether to accept international payments, it was how much of every dollar, pound, or euro actually makes it to your bottom line. Razorpay’s multi-currency EEFC settlement removes one of the most persistent, least visible costs from that equation.
If you’re settling internationally and spending internationally, there’s no good reason to go through INR in the middle.
→ Talk to a Razorpay expert about EEFC settlement
Frequently Asked Questions
What is an EEFC account and who can open one?
An EEFC (Exchange Earners’ Foreign Currency) account is a current account held in foreign currency with an RBI-authorised bank. Any resident in India who earns foreign exchange, including exporters, freelancers, and companies with international revenue, is eligible to open one. Up to 100% of foreign exchange earnings can be credited directly into the account.
Which currencies does Razorpay support for EEFC settlement?
Razorpay currently supports direct EEFC settlement in five currencies: USD, EUR, GBP, AED, and SGD. Transactions in other currencies continue to settle in INR as before.
Do I need to open a new merchant account with Razorpay to use EEFC settlement?
No. EEFC settlement is native to Razorpay’s existing platform. You don’t need a separate merchant account, new integration, or new dashboard. Everything works through your existing Razorpay setup.
How much can I save by settling in my EEFC account instead of INR?
The typical saving is 2–3% per transaction, the cost of the double conversion (foreign currency → INR → foreign currency). For a merchant processing ₹10 crore/month in international card volume, this translates to ₹20–30 lakh in monthly savings.
Are FIRS certificates provided automatically?
Yes. RBL Bank automatically delivers Foreign Inward Remittance Statements (FIRS) to your Razorpay dashboard. You don’t need to request them separately.
How are refunds and chargebacks handled?
Refunds and chargebacks are managed in the original transaction currency, the same currency the customer paid in. This means there’s no FX impact on dispute resolution.
Does EEFC settlement change my settlement timeline?
No. Settlements follow your existing international card settlement cycle. There is no additional delay introduced by routing to an EEFC account.
Can EEFC balances earn interest?
No. EEFC accounts are maintained as current accounts under RBI guidelines, so no interest is payable on balances. However, this also means you incur no interest cost on funds held in the account.
Can I hedge my EEFC balance against currency movements?
Yes. EEFC account holders can use forward contracts through their bank to hedge against exchange rate fluctuations. This is particularly useful for large, predictable foreign currency inflows.
Is Razorpay’s EEFC settlement RBI-compliant?
Yes. Razorpay’s EEFC settlement offering is structured in line with RBI guidelines for foreign exchange earnings and EEFC account usage, in partnership with RBL Bank, an RBI-authorised bank.
