This is a scheme permitting persons of Indian nationality or origin who have returned to India for permanent settlement (Returning Indians) after being resident outside India for a continuous period of not less than one year, to open foreign currency accounts against the proceeds held in NRE/FCNR accounts of Funds remitted from abroad.
Features
Minimum Account Opening Amount $5000 or equivalent.
Minimum Average Quarterly balance $5000 or equivalent.
Currency
Remittances can be in any convertible currency. However, RFC accounts can be maintained in any one of the following four currencies USD, GBP, JPY &Euro. An account holder can convert his/her deposit in Indian Rupees as and when he/she requires.
Maturity:
The interest rate on RFC accounts is set in line with FCNR rates and changed every month. The RFC fixed deposits are accepted for tenures from 1 month to 36 months.
Premature closures of deposits are subject to penalty of 1% on the rate applicable for the period for which it has actually run.
Repatriation: The balance in RFC Fixed account is fully repatriable.
Conversion into NRE/FCNR Accounts: Account balances can be transferred to NRI Accounts (Rupee / Foreign Currency), on regaining NRI status.
Tax Exemptions: TDS (Tax Deducted at source) exemption can be claimed on Interest earned if the deposit holder qualifies for RNOR (Resident Not Ordinary Resident) status. A returning Indian would have RNOR status if he has been a resident for at least 9 of the previous 10 years or if he had been in India for not more than 729 days in the previous seven years.
Nomination Facility: Nominations can be made in favour of residents as well as non- residents. On the death of the depositor, repatriation of the balances in the account is permissible to a nominee being a person resident outside India, to the extent of his share or entitlement from the account of the deceased account holder. If the nominee is residing in India on the date of death of the account holder, then the equivalent amount will be paid to him in Indian Rupees. In the event of the nominee being a person resident in India, who is desirous of remitting funds outside India, out of his share for meeting the liabilities abroad of the deceased, an application would have to be made to the Reserve Bank of India for such remittance.
Permissible Credits & Debits
The entire amount of foreign exchange assets acquired or held while a person was resident outside India. This could be in the form of deposits in banks outside India, investments in foreign currency, shares and securities or immovable properties situated outside India or investments in business etc. outside India. It includes foreign exchange earnings through employment, business or vocation outside India commenced by the NRI while he was resident outside India.
Also, all balances standing to the credit of their NRE//FCNR accounts at the time of return can be credited to RFC Accounts.
NRIs bringing Foreign Currency Notes & Traveler’s Cheques will have to submit a Currency Declaration Form (CDF) to the customs authorities on arrival in India if the foreign currency notes exceed USD 5,000/- or combined value of Traveler’s Cheques and notes exceed USD 10,000/-. Currency Declaration Form must also be produced for endorsement by the bank when a person submits money for opening/credit to an account.
Income received from overseas assets in the form of dividends etc, or sale of proceeds of such assets & pension from abroad can also be credited to the RFC Account.
RFC funds can be freely drawn in Indian rupees for use locally
Eligibility
RFC Fixed account can be opened by persons of Indian nationality or origin who:
have returned to India on or after 18th April, 1992
were resident outside India for a continuous period of not less than one year prior to their return
have been permanently settled in India since their return.
The account can be held jointly with another person resident in India who is eligible to open an RFC account.
RFC Current Account
This is a scheme permitting persons of Indian nationality or origin who have returned to India for permanent settlement (Returning Indians) after being resident outside India for a continuous period of not less than one year, to open foreign currency accounts against the proceeds held in NRE/FCNR accounts of Funds remitted from abroad.
Features
Minimum Account Opening Amount $5000 or equivalent.
Minimum Average Quarterly balance $5000 or equivalent.
Currency Remittances can be in any convertible currency. However, RFC accounts can be maintained in any one of the following four currencies USD, GBP, JPY &Euro. An account holder can convert his/her deposit into Indian Rupees as and when he/she requires.
Repatriation The balance in RFC current account is fully repatriable.
Conversion into NRE/FCNR Accounts: Account balances can be transferred to NRI Accounts (Rupee / Foreign Currency), on regaining NRI status.
Nomination facility Nominations can be made in favour of residents as well as non- residents. On the death of the depositor, repatriation of the balances in the account is permissible to a nominee being a person resident outside India, to the extent of his share or entitlement from the account of the deceased account holder. If the nominee is residing in India on the date of death of the account holder, then the equivalent amount will be paid to him in Indian Rupees. In the event of the nominee being a person resident in India, who is desirous of remitting funds outside India, out of his share for meeting the liabilities abroad of the deceased, an application would have to be made to the Reserve Bank of India for such remittance.
Permissible Credits & Debits
The entire amount of foreign exchange assets acquired or held while a person was resident outside India. This could be in the form of deposits in banks outside India, investments in foreign currency, shares and securities or immovable properties situated outside India or investments in business etc. outside India. It includes foreign exchange earnings through employment, business or vocation outside India commenced by the NRI while he was resident outside India.
Also, all balances standing to the credit of their NRE//FCNR accounts at the time of return can be credited to RFC Accounts.
NRIs bringing Foreign Currency Notes & Traveler’s Cheques will have to submit a Currency Declaration Form (CDF) to the customs authorities on arrival in India if the foreign currency notes exceed USD 5,000/- or combined value of Traveler’s Cheques and notes exceed USD 10,000/-. Currency Declaration Form must also be produced for endorsement by the bank when a person submits money for opening/credit to an account.
Income received from overseas assets in the form of dividends etc, or sale of proceeds of such assets & pension from abroad can also be credited to the RFC Account.
RFC funds can be freely drawn in Indian rupees for use locally
Eligibility
RFC Current account can be opened by persons of Indian nationality or origin who:
have returned to India on or after 18th April, 1992
were resident outside India for a continuous period of not less than one year prior to their return
have been permanently settled in India since their return.
The account can be held jointly with another person resident in India who is eligible to open an RFC account.
This is a scheme permitting persons of Indian nationality or origin who have returned to India for permanent settlement (Returning Indians) after being resident outside India for a continuous period of not less than one year, to open foreign currency accounts against the proceeds held in NRE/FCNR accounts of Funds remitted from abroad.
Features
Minimum Account Opening Amount $5000 or equivalent.
Minimum Average Quarterly balance $5000 or equivalent.
Currency Remittances can be in any convertible currency. However, RFC accounts can be maintained in any one of the following four currencies USD, GBP, JPY &Euro. An account holder can convert his/her deposit into Indian Rupees as and when he/she requires.
Repatriation The balance in RFC current account is fully repatriable.
Conversion into NRE/FCNR Accounts: Account balances can be transferred to NRI Accounts (Rupee / Foreign Currency), on regaining NRI status.
Nomination facility Nominations can be made in favour of residents as well as non- residents. On the death of the depositor, repatriation of the balances in the account is permissible to a nominee being a person resident outside India, to the extent of his share or entitlement from the account of the deceased account holder. If the nominee is residing in India on the date of death of the account holder, then the equivalent amount will be paid to him in Indian Rupees. In the event of the nominee being a person resident in India, who is desirous of remitting funds outside India, out of his share for meeting the liabilities abroad of the deceased, an application would have to be made to the Reserve Bank of India for such remittance.
Permissible Credits & Debits
The entire amount of foreign exchange assets acquired or held while a person was resident outside India. This could be in the form of deposits in banks outside India, investments in foreign currency, shares and securities or immovable properties situated outside India or investments in business etc. outside India. It includes foreign exchange earnings through employment, business or vocation outside India commenced by the NRI while he was resident outside India.
Also, all balances standing to the credit of their NRE//FCNR accounts at the time of return can be credited to RFC Accounts.
NRIs bringing Foreign Currency Notes & Traveler’s Cheques will have to submit a Currency Declaration Form (CDF) to the customs authorities on arrival in India if the foreign currency notes exceed USD 5,000/- or combined value of Traveler’s Cheques and notes exceed USD 10,000/-. Currency Declaration Form must also be produced for endorsement by the bank when a person submits money for opening/credit to an account.
Income received from overseas assets in the form of dividends etc, or sale of proceeds of such assets & pension from abroad can also be credited to the RFC Account.
RFC funds can be freely drawn in Indian rupees for use locally
Eligibility
RFC Current account can be opened by persons of Indian nationality or origin who:
have returned to India on or after 18th April, 1992
were resident outside India for a continuous period of not less than one year prior to their return
have been permanently settled in India since their return.
The account can be held jointly with another person resident in India who is eligible to open an RFC account.
