Q1. What types of RFC accounts are permitted?
Ans: Current, Savings and Term deposits other than Recurring deposit accounts. However, RFC Savings Bank accounts cannot be opened for trade and commercial purposes. We offer RFC Savings Bank accounts and Term deposits.
Q2. Whether Joint account allowed?
Ans: RFC Accounts can be held jointly with resident relative as joint holder on ‘former or survivor’ basis. However, such resident Indian relative joint account holder cannot operate the account during the life time of the resident account holder.
Q3. What are the designated currencies?
Ans: USD, GBP, EUR, CAD, AUD.
Q4. What will happen to RFC account in case of change in residential status of the account holder from resident to Non-Resident?
Ans: When the RFC account-holder becomes NRI, account holder shall provide instruction to convert the RFC account(s) into FCNR (B)/NRE account(s) or as desired.
Q5. Whether Cheque Book facility available in RFC Savings Banks or Current Account?
Ans: In case of RFC Savings Banks and Current Account, cheque books shall not be issued. All operations should be carried out by authority letters issued by the account- holder.
Q6. For what Tenor RFC Terms Deposit can be opened?
Ans: The RFC Fixed Deposits can be opened for a minimum period of one month and a maximum period of 3 years. In exceptional cases, where the deposit is for a minimum amount of USD 250,000 or equivalent in other currencies, accounts may also be accepted for short periods of 1 Week to less than 1 Month. However, RFC Term Deposit denominated in the currencies- EUR and GBP can be opened for a minimum period of one year and maximum period of 3 years only.
Q7. Are there any tax exemptions on interest earned on RFC Deposit?
Ans: Tax exemption on interest payable is available where the depositor maintains the status of Resident but Not Ordinarily Resident [RNOR].
Q8. Whether loan/overdraft facility can be granted against RFC Term Deposits?
Ans: Rupee Loan in India can be granted to the depositor himself against the security of RFC deposits for all bona-fide purposes. In such cases, margin will be maintained at 10 % (minimum) of the face value of the term deposit. The value of the deposit will be arrived at by converting the Foreign Currency into Indian Rupees at the current TT buying rate as on the date of grant of the loan