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.
- 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.
- RFC account are of two different types savings and term deposit with bank in India.
- RFC Deposit Account is maintained in foreign currency and the interest earned is based on LIBOR.
- RFC account are available for a period from 6 months to 5 years.
- Interest earned on RFC deposit will be subjected to Tax provisions similar to domestic deposits.
- An RFC account can be opened without any regulatory approval from the Reserve Bank of India.
- Interest in RFC Account is credited quarterly and is taxable.
- 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.
- 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.
- 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