InvestorQ : What is a resident foreign currency (RFC) account?
Niharika Kamble made post

What is a resident foreign currency (RFC) account?

Answer
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Nitin Shah answered.
2 years ago


A resident foreign currency account is an account that’s used by Indians/non-resident Indians who are returning to India after living abroad.

As the money is maintained in accounts abroad in foreign currency, it is safe from foreign exchange risk. However, once these NRIs return to India, their money held in the then-resident country is converted to Indian rupees.

Additionally, if the NRI decides to go abroad again for a long term, the he/she can either remit the RFC balance abroad or transfer funds from his/her RFC account into an NRE or FCNR account.