– Claims settled in rupees by ECGC should not be construed as export realization in
foreign exchange and claim amount should not be credited to the EEFC account.
– Prior approval of the Reserve Bank is not required for remittances made from EEFC
accounts for consultancy services received.
• Resident Foreign Currency (Domestic) Accounts (RFCD)
• A person resident in India may open RFCD accounts out of foreign exchange acquired in
the form of currency notes, bank notes and traveler’s cheques:
– Acquired while on a visit to any place outside India by way of payment for services not
arising from any business in or anything done in India
– Acquired from any person not resident in India and who is on a visit to India, as
honorarium or gift or for services rendered or in settlement of any lawful obligation.
– Acquired by way of honorarium or gift while on a visit to any place outside India.
– Being the unspent amount of foreign exchange acquired from an authorized person for
– Being proceeds of life insurance policy claims/maturity/surrender values settled in
foreign currency from an insurance company in India permitted to undertake life
– Being gifts received from close relatives.
– Debits can be towards:
• Current account transactions.
• Capital account transactions.
– These accounts are current accounts and will earn no interest.
– There are no ceilings to the balance that may be held in these accounts.
– Balances in the RFC (D) accounts may be credited to NRE/FCNR (B) Account, at the
option/request of the account holders consequent upon change in their residential status
from resident to nonresident.
• Resident Foreign Currency (External) Account (RFCE)
– A firm or company incorporated in India may open, hold and maintain a foreign
currency account outside India by making remittances from India for the purpose of
normal business operations of a branch office or a representative there.
– Indian companies or individuals executing turnkey projects or civil constru