What is a Resident Foreign Currency Account?

An RFC (Resident Foreign Currency) Savings Account is a savings account maintained in foreign currencies – USD and GBP – for NRIs who have returned to India and hold funds in foreign currency.

What is a foreign currency account used for?

A foreign currency account is a transaction account that allows you to receive, hold and send funds in foreign currencies. You can make and receive payments in currencies such as USD, EUR and CNY, without needing to open a bank account in the respective country.

What is the Speciality of EEFC account?

An EEFC account allows you to credit 100\% of your foreign currency earnings. It is, however, subject to a condition. On or before the last day of next month, the total accrual during the month will have to be converted into rupees.

Who can open a resident foreign currency account?

Answer: A resident individual can open a foreign currency account with a bank outside India in the following cases:

• A resident student who has gone abroad for studies for the period of stay abroad.
• A resident who is on a visit to a foreign country for the period of stay abroad.

Can resident Indian Open RFC account?

An RFC account can be opened with a joint holder who is a resident Indian on a ‘former or survivor’ basis.

What are the permitted debits in EEFC account?

What types of debits are allowed into the EEFC account?

• Payments outside India towards a permissible current account transaction and permissible capital account transaction.
• Payments for the cost of goods purchased from 100\% EOU or units in EPZ/STP/EHTP.
• Payments of custom duty.

Can I keep foreign currency in bank account?

You can use a foreign currency account for business and personal needs. An international bank like Citibank or HSBC may allow you to deposit and withdraw money from your foreign currency account at a branch or online. Some only offer major currencies — dollars, pounds and yen, for example — for withdrawal at a branch.