The central bank added that "it will permit future accretions (in EEFC) only up to 50 per cent of what is currently eligible", and "such accretions should be maintained in liquid form in current/savings accounts". It also said credit facilities availed of against EEFC accounts would be held in abeyance till further notice.

The EEFC account was first introduced in 1992 and enabled exporters of both goods and services to retain a portion of their receipts in in foreign exchange.

"With the operationalisation of the Foreign Exchange Management Act on June 1, 2000, and the rupee becoming fully convertible on current account, the EEFC scheme is under review," according to an RBI statement on the measures announced on Monday. Balances in EEFC accounts amount to almost $2 billion and most of these balances are held in idle interest-bearing accounts.

On Friday, the rupee had gone to a life-time low of 45.07 prompting RBI governor Bimal Jalan to say that a few corporates had been asked to bring back external commercial borrowings, ADR proceeds and sell EEFC account holdings.

The gain in the spot-rupee also saw forward premiums quote softer. The six-month annualised forward premium ended at an annualised 4.1 per cent (4.35 per cent). August dollars ended at 11/12 paise (14/15 paise), September at 26/27 (29/30) with February at 99/100 (101/105) and March at 112/114 (119/120). "There was all-round receiving after the Reserve Bank statement," a dealer with a forex brokerage said.

Bond prices too reacted to the developments in the forex market. The 12.50 per cent 2004 was seen at 105.05 levels (Rs 104.80). The 11 per cent 2006 finished at Rs 100.01/02 levels (Rs 99.75). "Bond prices opened low, but gained after the Reserve Bank's statement and the subsequent gain in the spot-rupee," an analyst with a primary dealership said.