Resident Foreign Currency or RFC account: Who can open, how does it work?
Who can open?
It can be opened by individuals who come back to India after their stay abroad; by non-resident Indians (NRIs) and persons of Indian origin (PIOs/OCIs) seeking to maintain foreign currency holdings in India; and those eligible for foreign exchange remittances like pensions, salaries, or proceeds from overseas asset sales.
Eligibility
The following conditions need to be fulfilled:
- Should be NRIs who have returned to India on or after 18 April 1992.
- Should have been residents outside India for a continuous period of not less than one year prior to their return.
- Should have been permanently settled in India since their return.
Process of opening
- Select a bank offering this account. Along with the account opening form, submit the following:
- Photocopies of pages showing passport details and personal details of all the applicants.
- Copy of Permanent Account Number (PAN)/Form 60 (in the absence of PAN).
- Copy of valid visa and immigration stamps showing evidence of foreign stay for at least one year.
- Passport-sized photograph.
- RFC declaration form.
Transactions allowed
The RFC account allows deposit of foreign currency funds, and receipt of foreign currency income like pension and dividends. It allows conversion of one foreign currency to another approved currency or to Indian rupees.
Content on this page is courtesy Centre for Investment Education and Learning (CIEL).
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.
