The entire amount of foreign exchange brought to India at the time of return to India for permanent settlement as well as balances standing to the credit of NRE and FCNR accounts at the time of return, income received on overseas assets in the form of interest, dividends, sale proceeds of assets, pensions received from abroad etc. can be credited to RFC accounts. Funds in RFC accounts can be remitted abroad for any bona fide purpose of the account holder or dependants. It can also be used for making local payments. Can be transferred from one RFC account to another of the same account holder. Nomination facility available.
Nominees can be residents or non-residents.
The funds may also be repatriated to him when a claim becomes payable subject to satisfaction of conditions. Deposits for period ranging from 6 months to 3 years. Deposits maintained in Indian Rupees only on a non-repatriable basis. Income from the deposits will be free from Income tax. On maturity, if the deposit holder is an NRI, the deposit can be renewed further as an NRNR deposit.