Opportunity in India for Returning NRIs

Opportunity in India for Returning NRI who are willing to settle down in India, facilities to NRIs in India by banks.

  1. An NRI, who has resided outside India for a continuous period of at least 12 months and is now returning to India for permanent settlement, can open and maintain foreign currency account called Resident Foreign Currency (RFC) account.
  2. RFC account is mainly useful for NRIs who have returned to India and would like to bring back foreign currency from their overseas bank accounts.
  3. Types of RFC Account: RFC account are of two different types 'savings' and 'term deposit' with bank in India.
  4. Currency: RFC Deposit Account is maintained in foreign currency and the interest earned is based on LIBOR.
  5. Tenure: RFC account are available for a period from 6 months to 5 years.
  6. Interest earned on RFC deposit will be subjected to Tax provisions similar to domestic deposits.
  7. Regulatory Approval requirement: An RFC account can be opened without any regulatory approval from the Reserve Bank of India.
  8. Interest: Interest rate payable on the RFC Account is decided by the bank on the basis of market rates. Interest in RFC Account is credited quarterly and is taxable.
  9. If RFC account holder is a Resident but not Ordinary Resident (RNOR), then he/she can avail of a tax exemption on the interest on RFC account for 2 years when he/she holds RNOR status.
  10. Nomination Facility: RFC account holder can nominate either a resident or a non resident for your RFC account. In case of demise of the accountholder, if the nominee is a resident, the balance in the RFC account will be paid to the nominee in Indian rupees but if the nominee is an NRI, the balance will be remitted abroad.
  11. Permissible credits to RFC account are:
    • Foreign exchange earnings through employment or business
    • Foreign exchange received as pension or any other superannuation or other monetary benefits from his employer outside India.
    • Foreign currency assets acquired, owned and held outside India and brought to India at the time of returning for permanent stay.
    • Foreign exchange received or acquired when he was resident outside India as gift or inheritance from a person resident outside India.
    • Balances of NRE and FCNR B accounts at the time of return