Resident Foreign Currency (Domestic) Account-RFC(D) Account

A resident individual may open an RFC(D) account to retain in a bank account in India the foreign exchange acquired in the form of currency notes, bank notes and travellers’ cheques from overseas sources such as

• payment while on a visit abroad for services not arising from any business or anything done in India.
• honorarium or gift or for services rendered or in settlement of any lawful obligation from any person not resident in India and who is on a visit to India.
• honorarium or gift while on a visit to any place outside India.
• gift from a relative.
• unspent foreign exchange acquired from an authorised person for travel abroad.
• representing the disinvestment proceeds received by the resident account holder on conversion of shares held by him to ADRs/ GDRs under the DR Scheme, 2014
• by way of earnings received as the proceeds of life insurance policy claims/maturity/ surrender values settled in foreign currency from an insurance company in India permitted to undertake life insurance business by the Insurance Regulatory and Development Authority

> The sum total of the accruals in the account during a calendar month should be converted into Rupees on or before the last day of the succeeding calendar month after adjusting for utilization of the balances for approved purposes or forward commitments.

> Balances in the account can be used for any current or capital account transactions in accordance with the provisions of the Foreign Exchange Management (Current Account Transactions) rules,2000 or the Foreign Exchange Management (Permissible Capital Account Transactions) Regulations,2000 respectively.

> Balances may be credited to NRE/FCNR(B) Accounts, at the option/request of the account holder consequent upon change of their residential status from resident to Non-resident.