A Resident Foreign Currency account in India can be maintained by a Non-resident Indian who has returned home for permanent settlement, after staying abroad for a minimum period of one year. An RFC account can be opened without any regulatory approval from the Reserve Bank of India.
RFC accounts can be maintained in USD/EUR/GBP/JPY/AUD/CAD in the form of Savings / Term Deposit
Credits to the account can be in any of the following means:
Balances standing to the credit of NRE and FCNR accounts at the time of return.
Income from overseas assets or sales proceeds from overseas assets.
Entire amount of pension received from abroad.
Balance in the account can be remitted abroad for bonafide purposes either for self or dependents.
If you decide to go abroad again you can transfer your funds to NRE/FCNR account (s)
Interest earned on RFC account is subject to tax.
