What
is the Resident Foreign Currency (RFC) Account Scheme?
This
is a Scheme approved by Reserve Bank permitting persons
of Indian nationality or origin, who have returned to
India on or after 18th April 1992 for permanent settlement
(Returning Indians), after being resident outside India
for a continuous period of not less than one year to
open foreign currency accounts with banks in India for
holding funds brought by them to India. Persons who
have returned to India before 18th April 1992 can also
open RFC account if (a) they are holding foreign currency
assets abroad with Reserve Bank's permission or (b)
are in receipt of pension or other monetary benefits
from their erstwhile employers abroad.
Is
any permission from Reserve Bank required for opening
such accounts with authorised dealers?
No.
In
which currencies can RFC accounts be maintained?
RFC
accounts can be maintained in any convertible currency.
What
funds can be credited to RFC accounts of Returning Indians?
The
entire amount of foreign exchange brought to India at
the time of their return to India for permanent settlement
as well as the balances standing to the credit of their
NRE and FCNR accounts at the time of return can be credited
to RFC accounts. However, the foreign exchange brought
to India in the form of foreign currency notes/bank
notes/travellers cheques should have been declared to
Customs at the time of arrival on the Currency Declaration
Form (CDF) if it exceeded U.S. $ 10,000 or its equivalent.
In the case of foreign currency/bank notes, such a declaration
on form CDF is compulsory if the amount exceeds U.S.
$ 5,000 or its equivalent.
Can
income received from their overseas assets in the form
of dividends etc., or sale proceeds of such assets be
credited to RFC accounts?
Yes.
The entire income from such assets or sale proceeds
of such assets repatriated to India can be credited
to RFC accounts.
Can
pension received by the account holder from abroad be
credited to his RFC account?
Yes.
The entire amount of pension received from abroad can
be credited to his RFC account.
NRIs
returning to India for permanent settlement were granted
RIFEE facility. Is this facility still available?
No.
RIFEE facility has been replaced by the RFC accounts
facility.
Can
funds in RFC accounts be remitted abroad?
Yes.
Funds in RFC accounts can be remitted abroad for any
bona fide purpose of the account holder or his dependents
including exchange required for travel and other personal
purposes and investments.
Can
funds in RFC accounts be utilised for local payments?
Yes.
Funds in RFC accounts can be withdrawn freely for local
payments.
Can
a Returning Indian desiring to go abroad again for employment,
business or vocation transfer his funds in RFC account
to NRE/FCNR account?
Yes.
Can
persons who have returned to India after a short assignment
of less than one year open RFC accounts?
Their
applications for opening such accounts would be considered
by Reserve Bank. Persons who have gone abroad for studies,
training, etc. are, however, not eligible for this facility.
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