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Q: What are the other salient features of NRE, FCNR, NRNR, and RFC accounts?

A: Interest on all above deposits is exempt from Indian income tax. The total balance i.e. principal plus interest is exempt from wealth tax. Gifts made out of the accounts to close relatives of the...

Q: Can persons who have returned to India after a short assignment of less than one year open RFC accounts?

A: Their applications for opening RFC accounts would be considered by the Reserve Bank. Persons who have gone abroad for studies, training, etc., are, however, not eligible for this facility....

Q: Can funds in RFC accounts be remitted abroad?

A: Yes. Funds in RFC accounts can be remitted abroad for any bona-fide purpose of the account holder or his dependents as well as withdrawn freely for local payments in rupees. Source : Reserve...

Q: What funds can be credited to RFC accounts of Returning Indians?

A: The Returning Indians can credit to RFC accounts, the entire amount of foreign exchange brought to India at the time of their return to India for permanent settlement as well as the balances...

Q: What is the Resident Foreign Currency Account Scheme?

A: This is a Scheme drawn up by the Reserve Bank permitting Returning Indians to open foreign currency accounts with banks in India for holding funds brought by them to India. This facility replaces...

Q: Can Returning Indians continue to maintain their existing NRE/FCNR/NRO accounts in India?

A: No. Returning Indians are required to redesignate immediately on their return to India their NRE/FCNR accounts as resident rupee accounts or transfer the balances held in their NRE/FCNR accounts to...