Know Everything About RFC Account: Features and How to Open
An RFC (Resident foreign currency) account can be an excellent option for Indians who have returned to India after spending at least one year abroad and need to manage their earnings in foreign denominations only. You may open an RFC account with any Indian bank that offers this facility and maintain your money in different currencies as per the rule of your bank.
Let’s look at some of the unique features of an RFC account.
Features of an RFC Account:
- Any individual who has returned to India after staying abroad for a continuous period of 1 year or more is eligible to open an RFC account. The account can be opened directly through the bank or any authorised dealer.
- An RFC account can be a savings or a fixed deposit account and can be opened with any Indian bank providing these facilities.
- Funds gathered from different overseas sources can be deposited in an RFC account such as salary, pension, through any business activity, money acquired through the sale of assets, dividend or returns on any investment, etc. The foreign currency accepted for deposit may vary from bank to bank. For example, ICICI bank allows you to maintain the deposit in USD or GBP.
- The RFC account can be held under a single name or jointly with any resident relative on a ‘former or survivor’ basis. A resident relative maybe your parents, spouse, siblings, step-parents or step-children, etc.
- The deposits with the RFC account can be used for any expenses or investments abroad. Also, you can withdraw money from an RFC account for usage in India. The currency will be converted to Indian rupee as per the current rate, and you may then easily withdraw cash from your branch.
- If an RFC account holder goes abroad again for a longer period, you may remit the money abroad or can get the amount transferred to your NRE or FCNR accounts.
- Nomination facility is also available with RFC accounts. A resident or a non-resident can be nominated by the account holder for remittance in case of the death of the account holder.
Documents Required for Opening an RFC Account:
The following documents are to be submitted while applying for an RFC account:
- Duly filled application form for RFC accounts.
- Expired visa for employment or work permit.
- Self-attested copy of a valid passport.
- Address proof of current residence in India.
How to Choose a Bank For opening an RFC Account
It is essential to choose a bank that has a good credibility and is known for offering world-class services to its customers. An Indian bank with a strong overseas presence may be the right choice for you. Also, ensure the bank you choose comes with ease of withdrawal of funds in India in INR. Moreover, look at service charges before deciding.
Park Your Foreign Currency Funds with RFC Accounts:
An RFC account helps you to maintain your foreign currency funds safely, with the convenience of operations. Also, if you move abroad later on, the funds can be easily transferred to your NRE or FCNR accounts.
Disclaimer: This content is distributed by ICICI Bank. No TNIE Group journalist is involved in the creation of this content.