What Kinds of Credits (Deposits) Are Allowed in an RFC Account?

The permissible kinds of credits include the following: Foreign exchange from the sale of overseas assets. Balances transferred from your NRE or FCNR accounts. Income from foreign sources, like dividends, interest, and pensions. Some jurisdictions may also need you to publish a notice of your DBA in a local newspaper.

What Kind of Debts (Withdrawals) Can I Make From an RFC Account?

You can withdraw the funds to use for: remittances investments abroad personal expenses in India or abroad Maintenance of dependents overseas

Is the RFC Account Fully Repatriable?

Yes, Funds in an RFC Account Can Be Freely Repatriated Abroad Without Facing Any Restrictions.

Can I Open an RFC Fixed Deposit?

Yes, You Can Place Your Foreign Currency Into Term Deposits (Fixed Deposits) in an RFC Account for Tenures Like 1 to 3 Years. However, This is Subject to the Bank's Terms.

What Happens to Foreign Exchange Gains or Losses in RFC Accounts?

If You Are Under the Rnor Status, Then You May Receive a Tax Exemption on Foreign Exchange Gains or Losses. However, Once You Become a Ror, Gains or Losses in the RFC Account Will Be Subject to Taxation.

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What is an RFC Account for NRIs Returning to India?

By Navneet Jain |Last Updated: January 6, 2026

What is an RFC Account for NRIs Returning to India?

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Frequently Asked Questions

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An RFC Account Allows a Person Returning to India to Hold Foreign Currency in India. It Lets You Maintain Foreign Currency Deposits Such as Usd, Eur, Gbp Instead of Converting Them Immediately to Indian Rupees.

You Can Open an RFC if You Are an Nri, Oci (Overseas Citizen of India), or Pio (Persons of Indian Origin) Returning to India Permanently, After Having Stayed Abroad for a Continuous Period of at Least One Year.

No, Once You Move Permanently to India, You Cannot Continue Operating Nre or Fcnr Accounts. You Must Convert or Transfer Those Balances Into an RFC Account.

The permissible kinds of credits include the following:

Foreign exchange from the sale of overseas assets.
Balances transferred from your NRE or FCNR accounts.
Income from foreign sources, like dividends, interest, and pensions.
Some jurisdictions may also need you to publish a notice of your DBA in a local newspaper.

You can withdraw the funds to use for:

remittances
investments abroad
personal expenses in India or abroad
Maintenance of dependents overseas

What is an RFC Account for NRIs Returning to India?

Frequently Asked Questions

What is an RFC (Resident Foreign Currency) Account?

Who is Eligible to Open an RFC Account?

Can I Keep My Existing NRE or FCNR Account After Returning to India?

What Kinds of Credits (Deposits) Are Allowed in an RFC Account?

What Kind of Debts (Withdrawals) Can I Make From an RFC Account?

What is an RFC Account for NRIs Returning to India?

Frequently Asked Questions

What is an RFC (Resident Foreign Currency) Account?

Who is Eligible to Open an RFC Account?

Can I Keep My Existing NRE or FCNR Account After Returning to India?

What Kinds of Credits (Deposits) Are Allowed in an RFC Account?

What Kind of Debts (Withdrawals) Can I Make From an RFC Account?