Frequently Asked Questions


In which currency can I maintain RFC Fixed Deposit?

Your RFC Fixed Deposit can be maintained in permitted currencies such as USD, GBP, JPY, SGD, AUD and EURO.

What is the frequency of interest payment on RFC Fixed Deposit?

The interest is reinvested and paid at the time of maturity of the deposit

Is there a nomination facility available for RFC Fixed Deposit?

Yes. A nomination facility is available for RFC Fixed Deposit. For Non-Resident nominees, funds can be remitted abroad to the extent of their entitlement if on the date of the Account holder's death such nominees are residing outside India. If the nominee is residing in India on the date of death of the account holder, then the equivalent amount will be paid to him in Indian Rupees.

What funds can be credited to RFC Fixed Deposit?

The entire amount of foreign exchange assets acquired or held while you were resident outside India. This could be in the form of deposits in banks outside India, investments in foreign currency, shares and securities or immovable properties situated outside India or investments in business etc. outside India. It includes foreign exchange earnings through employment, business or vocation outside India commenced by the NRI while he was resident outside India. 

Also, all balances standing to the credit of their NRE/FCNR Accounts at the time of return can be credited to RFC Accounts.

If the foreign currency notes brought by you exceed USD 5,000/- or the combined value of Travellers Cheques and notes exceed USD 10,000/-, then you have to submit a Currency Declaration Form (CDF) to the customs authorities on arrival in India. You must produce the Currency Declaration Form for endorsement by the bank when you submit the money for opening/credit to an account.

Can income received from my overseas assets in the form of dividends etc. or sale of proceeds of such assets be credited to RFC Fixed Deposit?

Yes. You can credit income received from your overseas assets in the form of dividends etc, or sale proceeds of such assets to RFC Fixed Deposit.

Can my pension from abroad be credited to my RFC Fixed Deposit?

Yes. Pension from abroad can be credited to your RFC Fixed Deposit.

Can funds held in the RFC Fixed Deposit Account be remitted abroad?

Funds in RFC Fixed Deposit can be remitted abroad for any bonafide purpose of the Account holder.

What taxes am I liable to pay if I have an RFC Fixed Deposit?

TDS (Tax Deducted at Source) exemption can be claimed on interest earned basis declaration of RNOR (Resident but Not Ordinarily Resident) status, if eligible, at the start of the financial year.

Who can be a joint holder for my RFC Fixed Deposit?

Can be held jointly with resident relative as joint holder on ‘former or survivor’ basis. However, such resident Indian relative joint account holder cannot operate the account during the life time of the primary account holder who is eligible for opening RFC account.