Resident Foreign Currency Term Deposit

Permitted Credits

• Remittance from abroad such as funds in bank account outside India, income such as dividend, interest, profit, rent, etc., sale proceeds of eligible assets abroad
• Pension or other monetary benefits received outside India, arising out of employment outside India prior to his returning to India
• Interest earned on RFC account
• Foreign currency notes or travellers cheques
• Transfer from other RFC accounts
• Balance transferred from NRE or FCNR accounts
• Transfer from RIFEE account

Remittance out of the accounts after the account holder’s death

• If the nominee is a person resident outside India, then funds may be remitted outside India to the extent of his share or entitlement from the account of the deceased
• If the nominee is resident in India, and for meeting the liabilities of deceased, wants to remit funds outside India, he can do so after obtaining permission from RBI

Withdraw from deposit if and when you need to

• USD- No penalty for individual deposit below USD 1 million
• EURO- No penalty for individual deposit below EURO 1 million
• GBP - No penalty for individual deposit below GBP 750,000
• AUD- No penalty for individual deposit below AUD 1.5 million
• CAD- No penalty for individual deposit below CAD 1.5 million

Permissible Debits

Any bona fide remittance outside India through normal banking channels, withdrawals or payments in India (in Indian rupees),
transfer to other RFC accounts
Payment in foreign currency in India can be permitted only with the permission of RBI