RFC (Resident Foreign Currency) Accounts are maintained in foreign currencies by NRIs/PIOs who have returned to India for permanent settlement (Returning Indians) and wants to hold their NRE/FCNR funds in foreign currency as well as continue their foreign currency assets abroad. For more details regarding permissible credits to RFC accounts refer the ‘Terms and Conditions’ tab.

• Facility to park foreign currency funds by returning Indians without the risk of foreign exchange conversion
• Balance fully repatriable including interest earned
• Can transfer the funds back to NRE/FCNR (B) account on re-gaining NRI status.
• No restriction on utilisation of funds in/outside India

• Designated Currencies- Open account in USD, GBP, EUR, CAD or AUD.
• Types of Account offered by us- Open RFC account as Savings or Term deposits other than Recurring deposit accounts. Savings Bank accounts cannot be opened for trade and commercial purposes.
• Joint Account- RFC Accounts can be held jointly with resident relative as joint holder on ‘former or survivor’ basis.
• Nomination Facility Available.
• Compounding of interest in RFC Term Deposit at half yearly interval.
• Automatic Renewal facility not available for RFC Term Deposit.

A person resident in India may open, hold and maintain a Foreign Currency Account, to be known as a Resident Foreign Currency (RFC) Account, out of foreign exchange-

• Received as pension or any other superannuation or other monetary benefits from his employer outside India ; or
• Realised on conversion of the assets referred to in sub-section (4) of section 6 of the FEMA 1999, and repatriated to India ; or
• Received or acquired as gift or inheritance from a person referred to in sub-section (4) of section 6 of the FEMA 1999 ; or
• Referred to in clause (c) of section 9 of the FEMA 1999, or acquired as gift or inheritance there from ; or
• Received as the proceeds of life insurance policy claims/ maturity/ surrender values settled in foreign currency from an insurance company in India permitted to undertake life insurance business by the Insurance Regulatory and Development Authority.

Guidelines for calculation and payment of interest for the overdue period on FCNR (B)/RFC Term Deposits are as mentioned below:-

In case a foreign currency denominated deposit with a fixed maturity date remains inoperative for a period of three years from the date of maturity of the deposit, at the end of the third year, the bank shall convert the balances lying in the foreign currency denominated deposit into Indian Rupee at the exchange rate prevailing as on that date. Thereafter, the depositor shall be entitled to claim either the said Indian Rupee proceeds and interest thereon, if any, or the foreign currency equivalent (calculated at the rate prevalent as on the date of payment) of the Indian Rupee proceeds of the original deposit and interest, if any, on such Indian Rupee proceeds.

If customer submits request for placement of such INR proceeds in term deposit, guidelines for payment of simple interest for overdue period of FCNR (B)/RFC deposit for the pre crystallization period of 3 years from the date of maturity are as follows:-

• If the depositor is NRI on the date of renewal – Rate of Interest shall be simple interest at par with RFC SB rate for the respective currency prevailing on the date of renewal or the contracted rate of interest on the matured TD, whichever is lower.
• If the depositor is resident on the date of renewal – Rate of Interest shall be RFC SB rate prevailing on the date of maturity or on the date of renewal, whichever is lower.
• In cases where FCY deposits are crystallized, customer is entitled for the simple interest at ongoing SB rate on the INR component for the post crystallization period irrespective of the fact whether customer opts for renewal or withdrawal.

Important Points

• In cases where deposit is overdue for more than 14 days, renewal from date of maturity is not permitted. If customer requests the Bank for renewal of such overdue deposit, the same shall be acceded to by treating it as a fresh term deposit at the interest rate prevailing on the date of renewal for the period of fresh term deposit.
• In case where deposit is not renewed for minimum maturity period, no interest for the overdue period for which it remained in FCY shall be paid.
• In case, where only a portion of the overdue deposit is renewed, interest for the overdue period shall be paid on the amount so placed.
• If, after renewal, the deposit is withdrawn before completion of the minimum stipulated period, interest paid for the overdue period i.e. period beyond the original date of maturity of earlier deposit shall be recovered.
• In case where deposit is crystallized, for determining interest rate for overdue period (pre-crystallization), customer’s residential status as on the date of renewal shall be reckoned.

APPLICATION FORMS:

• Account Opening Form For Resident Individual
• Undertaking for Opening an RFC Account

FAQS REGARDING THE PRODUCT

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