What moneys can be deposited in an RFC account ?
The entire amount of foreign exchange brought to India as well as the balance standing to the credit of NRE/FCNR can be credited to RFC accounts. Foreign currency notes/travelers cheque can also be credited to RFC accounts provided the quantum of exchange has been declared to customs at the time of arrival on the Currency Declaration Form (CDF) if the exchange exceeds USD 10,000/- or its equivalent. Q5) Are there any rules governing the use of funds deposited in an RFC account? A) Funds in an RFC account can be freely utilised for : • Local disbursement in Indian Rupees in India. • Bonafide purposes of the account holder or his dependent, e.g. travel/tours, medicine, education, etc. • Repatriation for the purpose of servicing assets abroad. • To open NRE/FCNR accounts, if the returning NRI goes abroad again – for employment/business/vocation.
