Returning NRIs/ PIO may open, hold and maintain with an authorised
dealer in India a Resident Foreign Currency (RFC) Account to transfer
balances held in NRE/FCNR (B) accounts. Proceeds of assets held
outside India at the time of return, can be credited to the RFC
account. The funds in RFC accounts are free from all restrictions
regarding utilisation of foreign currency balances including any
restriction on investment in any form outside India.
RFC (Domestic) Account
A person resident in India can open, hold and maintain with
an authorized dealer in India, a Resident Foreign Currency (Domestic)
Account, out of foreign exchange acquired in the form of currency
notes, Bank notes and travellers cheques from any of the sources
like, payment for services rendered abroad, as honorarium, gift,
services rendered or in settlement of any lawful obligation from
any person not resident in India
The account may also be credited with/opened out of foreign exchange
earned like proceeds of export of goods and/or services, royalty,
honorarium, etc., and/or gifts received from close relatives (as
defined in the Companies Act) and repatriated to India through
normal banking channels by resident individuals.
