Facilities to returning Indians w.r.t. RFC Scheme Assets |
What is the Resident Foreign Currency (RFC) Account Scheme?
This is a Scheme approved by Reserve Bank permitting
persons of Indian nationality or origin, who have returned to India on or after 18th April
1992 for permanent settlement (Returning Indians), after being resident outside India for
a continuous period of not less than one year, to open foreign currency accounts with
banks in India for holding funds brought by them to India. Persons who have returned to
India before 18th April 1992 can also open RFC account if (a) they are holding foreign
currency assets abroad with Reserve Bank's permission or (b) they are in receipt of
pension or other monetary benefits from their erstwhile employers abroad.
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Ans.II
No.
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RFC accounts can be maintained in any convertible
currency.
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The entire amount of foreign exchange brought to India at
the time of their return to India for permanent settlement as well as the balances
standing to the credit of their NRE and FCNR accounts at the time of return can be
credited to RFC accounts. However, the foreign exchange brought to India in the form of
foreign currency notes/bank notes/travellers cheques should have been declared to Customs
at the time of arrival on the Currency Declaration Form( CDF) if it exceeded U.S. $ 10,000
or its equivalent. In the case of foreign currency/bank notes, such a declaration on form
CDF is compulsory if the amount exceeds U.S. $ 2,500 or its equivalent.
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Yes. The entire income from such assets or sale proceeds
of such assets repatriated to India can be credited to RFC accounts.
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Yes. The entire amount of pension received from abroad
can be credited to his RFC account.
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No.RIFEE facility has been replaced by the RFC accounts
facility.
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Yes. Funds in RFC accounts can be remitted abroad for any
bona fide purpose of the account holder or his dependents including exchange required for
travel and other personal purposes and investments.
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Yes. Funds in RFC accounts can be withdrawn freely for
local payments in rupees.
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Yes.
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Their applications for opening such accounts would be considered by Reserve Bank. Persons who have gone abroad for studies, training ,etc. are, however, not eligible for this facility.