Resident Foreign Currency (RFC) Account

Overview:

  • To park funds for those NRIs / PIOs who have returned to India for permanent settlement (Returning Indians)
  • Account can be opened in USD, EURO or GBP
  • It can be opened either individually or jointly with any other person eligible to open RFC account
  • Both principal and interest are payable in foreign currency. Hence, there is no exchange loss on principal and interest
  • Account types permissible:
    • Term Deposit
    • Special Term Deposit
  • Interest earned is subject to tax depending on the status of the account holder i.e. Resident or RNOR ( Resident but not ordinarily resident)
  • It can be converted to FCNR (B) / NRE accounts in case the person regains NRI status
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