Overview
Enjoy the flexibility and freedom to maintain a foreign currency account as permitted by RBI. The RBI took an important step to open a world of foreign exchange facilities available to individual residents by allowing them to open, hold and maintain a Foreign Currency (domestic) Account with a licensed bank (which is also an Authorised Dealer) in India along with foreign exchange acquired from any of the sources specified as under can be kept in this account by the resident.
Features of NRI RFC Account
While on a visit to any place outside India by way of payment for services not arising from any business in or anything done in India
From any person, not a resident of India and who is on a visit to India, as honorarium or gift payment for services rendered or in settlement of any lawful obligations
By way of honorarium or gift while on a visit to any place outside India
From an authorized person for travel abroad and represents unspent amount
Gift received from a close relative
Foreign exchange earned through export of goods and/ or services; or royalty, honorarium, etc.
NRI RFC Account Eligibility Criteria
Any person residing in India can open or hold an RFC account out of Foreign Exchange received:
- As pension or any other superannuation or other monetary benefits from his employer outside India
- Upon the conversion of assets outside India and repatriated to India
- As a gift or inheritance from outside India
Type of Account
Type of Account: Current Account
Currency: Foreign Currency such as USD, GBP & EURO.
Eligible Credits: Out of Foreign Exchange acquired from the sources specified as above in the form of currency notes, bank notes and travellers cheques.
Eligible Debit: Payment towards current and capital account transactions in accordance with existing foreign exchange regularities.
Ceiling: No upper ceiling on balances held in account is stipulated by Reserve Bank of India.
Interest: No interest will be payable on balances held in account.
