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If you’ve been living abroad as a non-resident Indian (NRI) and have an overseas income source, an RFC account can help you manage your foreign income and investments without needing to convert to Indian rupees.
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You're eligible for an RFC Deposit account if you are:
If you move overseas again and become an NRI, you're eligible to open an FCNR (B) account (foreign currency non-resident bank account) or an NRE (non-resident external) account. Also, you can convert your existing resident account to NRO (non-resident ordinary).
Find out more about NRI services.
Having a resident foreign currency deposit account means you don’t have to worry about exchange rate fluctuation.
Most Indian banks allow deposits in widely accepted foreign currencies that can be easily converted.
| Currency | Minimum deposit amount |
|---|---|
| USD | 5,000 |
| GBP | 3,500 |
| JPY | 500,000 |
| EUR | 5,000 |
| Currency | USD | USD |
|---|---|---|
| Minimum deposit amount | 5,000 | 5,000 |
| Currency | GBP | GBP |
| Minimum deposit amount | 3,500 | 3,500 |
| Currency | JPY | JPY |
| Minimum deposit amount | 500,000 | 500,000 |
| Currency | EUR | EUR |
| Minimum deposit amount | 5,000 | 5,000 |
You can open an RFC Deposit account with a resident close relative (PDF, 241KB). If you hold a joint deposit with a resident Indian, it can only run on a ‘former or survivor’ basis.
Any interest you earn on your RFC deposits is taxed in India, in line with your tax bracket. Tax Deducted at Source (TDS) is also applicable on such interest earned.
Interest can be paid at set intervals or when your account matures. If you prefer to receive interest at intervals, let your bank know so they can deduct TDS on the interest and credit the rest.
Read Understanding NRI income tax rules to navigate Indian tax law.
If you’re returning to India, an RFC account is a simple and safe way to manage your overseas money without the risk of exchange rate instability.
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