RFC Account For NRIs: Eligibility Criteria, Required Documents & How to Apply

RFC Account For NRIs
RFC Account For NRIs

For Non-Resident Indians (NRIs) returning to India, financial transitions can pose significant challenges, particularly when it comes to managing foreign currency savings. The Resident Foreign Currency (RFC) Savings Account offers a solution, allowing returning NRIs to maintain their foreign currency earnings in India efficiently. This account ensures flexibility in managing international funds without the immediate need for conversion to Indian Rupees, thus avoiding potential losses due to currency fluctuations.

Also Read: What is a Tax Residency Certificate (TRC) & How Can NRIs Get TRC in India?

What is an RFC Savings Account?

An RFC Savings Account is specifically designed for NRIs who have returned to India permanently and wish to keep their foreign earnings in foreign currency. This type of account is perfect for those who want to retain their savings in currencies like USD, EUR, or GBP. It provides a secure way to manage foreign currency after moving back to India.

Features of the RFC Account

The RFC Account boasts several attractive features:

  • Account Types: Available as both current and deposit accounts, each with potentially different interest rates.
  • Currency Options: Supports major foreign currencies including USD, Euro, and GBP.
  • Full Repatriability: The total balance, including earned interest, can be repatriated, allowing flexibility in moving funds internationally.
  • Reversibility: If the account holder regains NRI status, funds can be transferred back to NRI accounts.
  • Legitimate Use Within India: Funds in the RFC account can be used for any legal purpose within India, with provisions for cash withdrawals in INR at bank branches.
  • Joint Account Possibility: Allows for joint account holding with another returning Indian.
  • Tax Advantages: Potential tax exemptions on interest earned, depending on the account holder’s tax residency status.
  • Nomination Facility: Available for making succession planning simpler.

How to Credit the RFC Account

Funding an RFC account is straightforward:

  • Foreign Transfers: Directly credit the account with freely convertible foreign currency upon your return to India.
  • From Other Accounts: Transfer funds from existing NRE or FCNR accounts held with any bank.

Required Documents

To open an RFC account, applicants need to provide several documents:

  • Photocopies of passport pages showing personal details.
  • PAN card copy or Form 60 in the absence of PAN.
  • Proof of foreign stay for at least one year (valid visa and immigration stamps).
  • A recent passport-sized photograph.
  • Completed RFC declaration form.

Eligibility Criteria For Opening an RFC Account

The eligibility criteria to open an RFC account are specific:

  • The individual must have returned to India permanently on or after April 18, 1992.
  • They should have been a resident outside India for a continuous period of not less than one year prior to their return.
  • They must be permanently settled in India post-return.

How to Open an RFC Account

Opening an RFC account involves a few steps:

  1. Choose a Bank: Research and select a bank that offers RFC accounts with favorable terms.
  2. Gather Documentation: Prepare all required documents as listed above.
  3. Visit the Bank: Although some banks might offer online applications, visiting a branch can provide direct assistance and immediate answers to queries.
  4. Submit Application: Fill out the application form, attach the necessary documents, and submit everything to the bank.
  5. Verification and Activation: The bank will verify the documents and information. Once approved, the account will be activated, and you can start using it immediately.


The RFC Savings Account stands out as a highly beneficial financial tool for NRIs returning to India, wishing to manage their foreign currency savings effectively. By offering flexibility, security, and ease of use, the RFC account helps returning NRIs reintegrate into the financial landscape of India without forcing immediate currency conversion, thereby safeguarding their financial interests

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