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What are the benefits of RFC accounts?

April 26, 2017accounts Benefits rfc

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What are the benefits of RFC accounts?

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Ans.: The benefits of RFC accounts are: In case of conversion from FCNR(B) accounts there is no exchange loss. Balance in RFC account can be used for local payments and can be remitted abroad for all bonafide purposes. In case the NRI was residing abroad continuously for a period of 9 years out of previous 10 years, then no tax on interest earned of RFC accounts for next 2 years. In the event of the returning Indian regarding his NRI status the balances in his RFC account can be reconverted into NRE/FCNR(B) deposits.