Eligibility
A person resident in
India may open, hold and maintain a Resident Foreign Currency Account.
Opening of Account
Any eligible person may open an account in
any foreign currency by submitting application in the prescribed form.
The following documents will also be
required attached to the application form:
- Attested copy of passport;
- Documentary evidence to show that funds proposed to be
credited to the account are eligible for the purpose.
RFC Account can be opened out of foreign exchange:
- received as pension or any other superannuation or other
monetary benefits from employer outside India; or
- realized on conversion of the assets owned by him when he
was non-resident;
- received or acquired as gift or inheritance from a person
resident outside India;
- acquired or received before 8th July1947 or any
income arising or acruing thereon which is held outside India by any person in pursuance
of permission granted by the RBI
Rate of Interest
The rates of interest offered by various
Banks in India differ.
It is beneficial to ascertain the best of
the rates offered by various banks before investing with any particular Bank.
Click Here for Interest Rates offered by various Banks and an
analysis of the same.
Loans/overdrafts against
the account
No loan or overdraft shall be allowed either directly or
indirectly against balances in an RFC account.
Nomination / Cancellation
The balance in the account, on the death of
an RFC account holder, may be repatriated to the resident nominee.
Joint Accounts
Non-Residents can also open joint accounts
with residents in India.
Tax Liability
Interest earned on balances in RFC account
is subject to Indian income tax.
For any information regarding the Resident Foreign Currency (RFC) Account Scheme,
please visit the FAQ section |
