RFC (Resident Foreign Currency) FAQs
- Sale / maturity proceeds of eligible assets held abroad.
- Pension or other monetary benefits received abroad India prior to NRI's returning to India.
- Travellers cheques brought into India at the time of returning to India.
- Remittance from abroad e.g. funds in bank account abroad, dividend income, interest income, profit earned, rent received, Foreign currency notes brought into India at the time of returning to India, etc.
- Interest earned on RFC account.
- Transfer from other RFC accounts of the same person.
- Balance fund transfer from NRI's NRE or FCNR accounts.
The balance held in a RFC account is free from all the restrictions with regard to its use including any restriction on investment outside India. Some of them are as follows:
- Any genuine remittance through normal banking channels.
- Foreign currency payments in India can be permitted only with the permission of RBI.
- Withdrawals or payments in India .
- Transfer to other RFC account of the same person.
Two persons shall be deemed to be 'relatives' if and only if -
- They are members of a Hindu Undivided Family or
- They are husband and wife or
- The one or the spouse of the one is related to the other or the spouse of the other as parent and child, grandparent and grandchild or brother and sister;
- The one is related to the other in the manner indicated in schedule I-A.
Yes. The balance held in a RFC account is free from all the restrictions with regard to its utilization.
Yes. It is allowed.
No. It can be opened either individually or jointly with any other person eligible to open RFC account.
RFC account can be held for any number of years. There is no restriction on number of years.
Yes, the interest earned on RFC deposits is taxable. However, an exemption is available for returning Indians, subject to Income Tax regulations.
No. Loan facility is not available against deposit in RFC account.
- NRI who has returned to India on or after 18th April, 1992.
- Resident outside India for a continuous period of not less than 1 year prior to his return.
- Who have permanently settled in India since returned from overseas
- Funds received from the employer outside India as pension or other monetary benefits.
- Income/ Sale proceeds of assets acquired out of foreign exchange earned abroad.
- Gift received or inheritance from a close relative.
- Proceeds of NRE/ FCNR accounts or funds remitted from abroad.
- Proceeds of life insurance policy claims/maturity/ surrender values settled in foreign currency from an insurance company in India.
Yes. A person can open RFC account any time after returning from abroad as long as he meets the eligibility criteria to open RFC account.
No. A person cannot withdraw foreign currency in cash from his RFC account, he can only withdraw INR currency.