NRIs returning to India for permanent settlement can open RFC accounts.
Permissible Credits
Facility for returning Indians.
Balance in NRE / FCNR accounts on arrival in India. (Fixed deposits can be closed prematurely without penalty or held till maturity and then credited to RFC a/c)
To maintain outside earnings in convertible foreign exchange.
All NRIs who had been resident outside India for a continuous period for 1 year eligible
Remittances from abroad being sales proceeds of assets held abroad or income earned abroad.
Proceeds of Foreign currency notes / Travelers cheques brought into India.
RFC accounts are at present being opened in USD only. Can be opened by PIOs / NRIs returning to India after staying abroad.
Maintained in USD in Savings Bank / Current account or Term Deposit of 12 / 36 months duration.
No cheque book issued for RFC(SB) account/Current Account.
Interest payable in USD - can be drawn in India rupees on conversion
Joint holding with another person eligible to open RFC account is permitted.
Funds can be used to make bonafide payments abroad.
Withdrawals can be made for making payments in India and are permitted in Rupees only.
The accounts can be converted to FCNR / NRE accounts in case the person becomes an NRI again. Click here for Interest rates
