What happens when an NRI becomes Resident?
A. As per prevailing exchange control regulations, NRI is required to intimate his banker about change in his residential status immediately on returning to India. His Rupee accounts are immediately redesignated as resident Rupee accounts. Further, Rupee Term Deposits are continued at the contracted rate of interest till due date. FCNR deposits are permitted to be continued at the contracted rates of interest till due date. NRIs are also at liberty to keep the funds in US Dollars by opting for Resident Foreign Currency (RFC) accounts.
