Question: What is a Resident Foreign Currency Account?

RFC accounts (Resident Foreign Currency) are bank accounts that can be maintained by resident Indians in foreign currency. These accounts are especially useful for Non Resident Indians (NRI) who return to India and would like to bring back foreign currency from their overseas bank accounts.

Who can open a resident foreign currency account?

Answer: A resident individual can open a foreign currency account with a bank outside India in the following cases:

  • A resident student who has gone abroad for studies for the period of stay abroad. …
  • A resident who is on a visit to a foreign country for the period of stay abroad.

How does a foreign currency account work?

A foreign currency account allows you to bill in a foreign currency, which makes dealing with overseas customers much easier. It also allows you to hold the foreign currency in a local account that you control. One of the biggest advantages of these accounts is avoiding conversion costs.

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How long can RFC account be maintained?

RFC accounts may be maintained in the form of current, savings (without cheque facility) or term deposit accounts and held singly or jointly only in the names of eligible persons. The term deposit accounts can be maintained for one to three years.

What is non resident foreign currency account?

Non-Resident Foreign Currency Deposit (NFCD) Account:

NFCD account is in the nature of term deposit maturing after one month, three months, six months and one year. … This account is interest bearing. The interest is exempted from tax. Foreign currency deposited in this account is freely convertible into Taka.

What is the difference between FCNR and RFC account?

Foreign Currency Non Resident (FCNR) account is a term deposit account that can be maintained by NRIs and PIOs in foreign currency whereas RFC accounts (Resident Foreign Currency) are bank accounts that can be maintained by resident Indians in foreign currency.

What is resident account?

Savings, Current and Fixed Deposit accounts opened by resident individuals can include Non-Resident Indian (NRI) close relative(s) (relatives as defined in Section 6 of the Companies Act, 1956) as a joint holder(s) in their resident savings bank accounts on an Either or Survivor (E/S) basis.

What is the benefit of having a foreign currency account?

A foreign currency account allows you to bill in a foreign currency, which makes dealing with overseas customers much easier. It also allows you to hold the foreign currency in a local account that you control. One of the biggest advantages of these accounts is avoiding conversion costs.

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Can I open a bank account with foreign currency?

Foreign Currency Accounts

Foreign currency savings, checking and money market accounts can be opened by qualified applicants from just about anywhere in the world. … The bank will then convert the funds to the currency of your choice at no fee.

Should I have a foreign currency account?

Foreign currency account is essential, especially for business owners. A foreign currency account enables you to access and receive payment from international clients outside your continent and country without stress or having to break a sweat.

What is Resident Foreign Currency RFC account?

RFC accounts (Resident Foreign Currency) are bank accounts that can be maintained by resident Indians in foreign currency. These accounts are especially useful for Non Resident Indians (NRI) who return to India and would like to bring back foreign currency from their overseas bank accounts.

What is EEFC and RFC account?

Exchange Earners Foreign Currency (EEFC) Account. Resident Foreign Currency (Domestic) [RFC(D)] Account. Resident Foreign Currency (RFC) Account.

What is meant by RFC account?

An RFC (Resident Foreign Currency) Savings Account is a savings account maintained in foreign currencies – USD and GBP – for NRIs who have returned to India and hold funds in foreign currency.

How many types of foreign currency accounts are there?

The types are: 1. Nostro Account 2. Vostro Account 3. Loro Account.

What is the maximum tenure for FCNR deposit?

It is controlled by the RBI and is the same across all banks. The FCNR is not a savings account but is a term deposit. The term should have a minimum maturity of 1 year and a maximum maturity period of 5 years.

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What is the difference between FCNR and FCNR B?

An FCNR account is a type of term deposit that NRIs can hold in India in a foreign currency. What is the difference between an FCNR (A) and FCNR (B) account? For starters, the FCNR (A) account does not exist any more. It was replaced by the FCNR (B) account in 1993.