Q1) Am I required to liquidate all my assets abroad, if I return to India or can I continue to hold them ?
A) The Government of India has provided a number of exemptions to NRIs. Effective July 17, 1992, NRIs have been allowed to retain their Foreign Currency assets, including immovable properties and Bank accounts,
provided the assets have been acquired out of foreign currency earned through employment/business or vocation carried out outside India while the individual was resident outside India and no contravention of any rules under Foreign Exchange Regulation Act 1973 should be involved.
The individual should have stayed abroad for at least one year before his return to India.
The NRIs have complete freedom of utilising these assets and the income earned thereon subsequently.
Q2) If a returning Indian repatriates his assets from abroad, how can he deal with them ?
A)If a returning Indian decides to repatriate his assets from abroad to India, he can hold money in RFC (Resident Foreign Currency) accounts maintained with any Indian Bank.
Q3) Who can open an RFC account ?
A) RFC accounts can be opened by persons of Indian nationality or origin who have returned to India on or after April 18, 1992 for permanent settlement after being resident outside India for a continuous period of not less than 1 year. RFC accounts can be maintained in any convertible currency.
Q4) What moneys can be deposited in an RFC account ?
A) The entire amount of foreign exchange brought to India as well as the balance standing to the credit of NRE/FCNR can be credited to RFC accounts. Foreign currency notes/travelers cheque can also be credited to RFC accounts provided the quantum of exchange has been declared to customs at the time of arrival on the Currency Declaration Form (CDF) if the exchange exceeds USD 10,000/- or its equivalent.
Q5) Are there any rules governing the use of funds deposited in an RFC account?
A) Funds in an RFC account can be freely utilised for :
- Local disbursement in Indian Rupees in India.
- Bonafide purposes of the account holder or his dependent, e.g. travel/tours, medicine, education, etc.
- Repatriation for the purpose of servicing assets abroad.
- To open NRE/FCNR accounts, if the returning NRI goes abroad again - for employment/business/vocation.
