Resident Foreign Currency Account (RFC) gives NRIs who have returned to India a good opportunity to earn high returns on the funds they hold in foreign currency without the risk of foreign exchange conversion.
The returning NRIs can credit to their RFC account the entire amount of foreign exchange assets acquired or held while he/she was NRI. This could be in the form of Deposits in Banks outside India, investments in foreign currency, shares and securities or immovable properties situated outside India or investments in business, etc. outside India. It also includes foreign exchange earnings through employment, business or vocation outside India commenced by the NRI while he was resident outside India. Also, all outstanding balances of their NRE/FCNR Accounts at the time of return can be credited to RFC Accounts.
Balances in RFC Accounts can be converted to INR and credited to Resident SB Account of the customer. Also, customer can withdraw INR Cash through Home Branch. The funds in RFC account are free from all restrictions regarding utilisation of foreign currency balances including any restriction on investment outside India.
RFC can be maintained in 3 currencies (USD, GBP, EUR) under Savings Bank variant and in 4 currencies (USD, GBP, EUR, JPY) under Term Deposit variant. Click here for interest rate on RFC Accounts
For RFC Fixed Deposit, the minimum tenure is 6 months and the maximum tenure is 3 years.