What is Resident Foreign Currency Account
RFC accounts (Resident Foreign Currency) are bank accounts that can be maintained by resident Indians in foreign currency. These accounts are especially useful for Non Resident Indians (NRI) who return to India and would like to bring back foreign currency from their overseas bank accounts.
After having worked abroad as an NRI (non-resident Indian), person would surely have some foreign investments such as bank account balance, investments in shares, mutual funds, etc.
Person would surely like to bring back your foreign currency from overseas back. After return to India, a person can open an RFC (resident foreign currency) account which can be used to credit income from foreign sources.
Who can open Resident Foreign Currency Account
Any NRI, who has returned to India on or after 18 April 1992, can open an RFC account. An RFC account can also be opened by an NRI who is employed abroad and his period of stay is at least one year prior to his return to India.
PIOs (person of Indian origins) or NRIs returning to settle permanently in India can open an RFC account.
An RFC account can be converted to FCNR(B) (Foreign Currency Non Resident (Bank) or NRE (non resident external) accounts in case the person becomes an NRI again.
Who is eligible for Resident Foreign Currency Account
Eligibility criteria to hold RFC account is as follows:
NRI who has returned to India on or after 18th April, 1992.
Resident outside India for a continuous period of not less than 1 year prior to his return.
Permanently settled in India.
Process of Opening Resident Foreign Currency Account
Documentation is required to open an RFC account.
Select bank offering RFC account services
Submit application form
RFC Declaration form
Copy of Permanent Account Number (PAN) / Form 60 (in the absence of PAN).
Copy of visa and immigration stamps showing evidence of foreign stay for at least 1 year (last departure and arrival page).
Passport-size photograph of all applicants.
Transactions allowed Resident Foreign Currency Account
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.