Want to park your foreign earnings on returning to India without converting it into INR? You can consider opening an RFC bank account. Check out this post to know the simple steps for opening an RFC bank account in India.
When NRIs (Non-Resident Indians) or PIOs (Person of Indian Origin) decide to return to India, they generally have their earnings parked in a foreign bank account. Many such NRIs and PIOs prefer not converting their foreign currency into INR while returning.
Protecting their foreign income from currency exchange fluctuations or visiting India temporarily are some of the most common reasons why several NRIs do not convert their foreign income into INR. Such NRIs and PIOs can prefer opening an RFC bank account in India.
Non-residents and Indians with RNOR (Resident But Not Ordinarily Resident) tax status are eligible to open this foreign currency denominated account. Here are the steps you can follow for opening an RFC bank account-
- Fill the Application Form
After reaching India, NRIs and PIOs who want to open an RFC bank account can visit the nearest branch of the bank in which they’d like to open their account. Consider factors like reputation, customer support, currency eligibility, and interest rate to choose the best bank.
After reaching the bank, request an RFC account application form, which should be duly filled and submitted to the bank. Some of the banks do offer the application form on their official websites. You can choose from RFC savings, current, and term deposit accounts.
- Attach the Required Documents
Along with the RFC account application form, applicants are also required to submit photocopies of some documents. Take a look at the list of documents for NRIs and PIOs-
For NRIs
- Current passport
- Expired employment visa or work permit
- Indian address proof
For PIOs-
- Current passport
- PIO or OCI card/ past Indian passport of self, parent, grandparent, or spouse along with a self-declaration of Indian origin
- Self-declaration for PIO
- An Indian resident or work visa
- Indian address proof
Note that all the KYC documents should be self-attested.
- Account Activation
If the application form and the submitted documents are in order, the bank will initiate the account opening process. Once the process is complete, you will receive a welcoming kit from the bank. An email will be sent to the registered email address once the account is ready to use.
After receiving the welcome kit and activating the account, you can then start using your RFC bank account. If you’ve opted for RFC fixed deposit, the tenure will begin once the account is activated. Check all the documents and leaflets included in the welcome kit to know more about your RFC bank account.
Opening an RFC Bank Account in India
An RFC bank account is a smart way for returning NRIs to park their foreign income and earn interest on the same without converting it to INR.
Now that you know the account opening process look for a reputed bank to open your RFC bank account at the earliest.
