- The scheme was introduced by RBI in September 1992. NRIs who have been residing outside India for a continuous period of not less than one year and have become residents in India on or after 18.04.1992 can open and maintain RFC accounts.
- For all practical purpose the accounts shall be treated as residents’ accounts and interest earned on these accounts are taxable.
- Accounts can be opened as Current, Savings bank (without cheque facility) and Term deposits.
- RFC accounts can be opened by direct inward remittance, cheques, drafts, travellers cheques, conversion of existing NRE/FCNR (B) accounts.
- RFC accounts can be accepted and maintained in any permissible currency. Presently Bank is accepting USD, GBP, EUR, CAD and AUD denominated accounts only.
- RFC TD is opened on similar terms and condition which are applicable to FCNR (B) Term deposit including minimum amount of deposit.
- Such accounts can be held jointly with resident relative as joint holder on ‘former or survivor’ basis. However, such resident Indian relative joint account holder cannot operate the account during the life time of the resident account holder.
Rate of interest is determined by the Bank from time to time on the basis of ongoing market rates.
- Remittance in convertible foreign currency from outside India through normal banking channels.
- Pension or other monetary benefits received from outside India in convertible foreign currency, through normal banking channels, arising out of employment taken up outside India by the eligible person prior to his returning to India.
- Interest on RFC account
- Foreign currency notes/travellers cheques brought to India by the eligible person subject to certain conditions.
- Transfer from other RFC accounts of the account holder
- Balances in any NRE/FCNR (B) account in the name of the eligible person standing to his credit at the time of his arrival in India.
- Unspent foreign exchange surrendered subject to satisfaction of the AD Bank and surrendered within the stipulated period as required under the Exchange Control Regulations.
- Funds in RFC account is allowed to be used freely by the account holder for any bona fide remittance outside India through normal banking channels including for investment abroad provided the cost of such investments and /or any subsequent payments required therefor are met out of RFC account.
- Withdrawals/payments from such accounts, other than for remittances outside India, or for payments in foreign currency authorized to be made in India by Reserve bank, shall be permitted only in equivalent Indian rupees at TT buying rate.
Resident Foreign Currency (Domestic) scheme
A person resident in India can now open, hold and maintain with our designated branches an RFC (Domestic) account out of foreign exchange acquired in the form of currency notes, bank notes and traveller cheques from the sources specified below-
- was acquired by him 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; or
- was acquired by him, from any person not resident in India and who is on a visit to India, as honorarium or gift or for services rendered or in settlement of any lawful obligations; or
- was acquired by him by way of honorarium or gift while on a visit to any place outside India; or
- Represents the unspent amount of foreign exchange acquired by him from an authorized person for travel abroad.
- Resident Foreign Currency (Domestic) Accounts can be opened in USD, GBP, EUR, CAD and AUD
- There will be no ceiling on balances held in the account.
- Cheque book facility will be provided.
- RFC (Domestic) Deposits can be transferred from one designated branch to another designated branch.
- The extant RBI guidelines are applicable in respect of maintenance/withdrawal of funds in RFC (Domestic). Presently funds credited to the RFC account should be utilized by the depositor by end of the following month.
- The sum total of the accruals in the account during a calendar month should be converted into Rupees on or before the last day of the succeeding calendar month after adjusting for utilization of the balances for approved purposes or forward commitments.
- Debits to account shall be for payment towards current/capital account transactions in accordance with the existing Foreign Exchange regulations.
No interest is payable on RFC (Domestic) account.
This scheme is in addition to the existing Resident Foreign Currency Scheme which Bank is operating for Residents who were earlier NRIs and have returned to India after working abroad.