TaxTMI 
TaxTMI 
Foreign Exchange Management (Foreign currency accounts by a person resident in India) Regulations, 2015
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....ccording to the regulations, a "Foreign Currency Account" means an account held or maintained in currency other than the currency of India or Nepal or Bhutan. 3. These regulations seek to regulate opening and maintenance of foreign currency accounts in and outside India by a person resident in India. 4. In terms of Regulation No. 4, a person resident in India may open, hold and maintain with an authorized dealer in India the following accounts, subject to the conditions specified in the regulations (details wherever necessary are given in Annex to this circular): • Exchange Earner's Foreign Currency (EEFC) Account subject to the terms and conditions of the Exchange Earner's Foreign Currency Account Scheme (Schedule I to the regulations); • Resident Foreign Currency (RFC) Account out of sources of receipt of foreign exchange mentioned in sub-regulation (B) of the regulations; • Resident Foreign Currency (Domestic) [RFC(D)] Account with an authorised dealer in India out of sources of receipt of foreign exchange mentioned in sub-regulation (C) of the regulations; • Diamond Dollar Account (DDA) - firms and companies who comp....
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....urance Corporation (GIC) of India and its subsidiaries for the purpose of carrying on life/ general insurance business; • A resident individual under the Liberalized Remittance Scheme; • A person going abroad to participate in an exhibition/ trade fair; • A person going abroad for studies; • A person who is on a visit to a foreign country provided the balances are repatriated on return to India; • A foreign citizen resident in India, being an employee of a foreign company, or an Indian citizen, being an employee of a foreign company, in either case on deputation to the office/ branch/ subsidiary/ joint venture/ group company in India; • A foreign citizen resident in India employed with an Indian company 7. In terms of regulation 6, unless otherwise specifically stated, a Foreign Currency Account with an authorized dealer in India under these Regulations may be opened, held and maintained in the form of current or savings or term deposit account in cases where the account holder is an individual, and in the form of current account or term deposit account in all other cases. The account can be held singl....
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....ge of their residential status from resident to non-resident. II. Resident Foreign Currency (RFC) Account [Regulation 4(B)] • Resident individuals are allowed to open a Resident Foreign Currency (RFC) Account with an AD bank in India out of foreign exchange received as pension, superannuation benefits, conversion of assets referred to in section 6(4) of the Act and other cases as laid down in regulation 4(B). The balances in the Non-Resident External (NRE) Account and Foreign Currency Non-Resident Bank [FCNR (B)] Account can be credited to the RFC account when the residential status of the non-resident Indian (NRI) changes to that of a Resident. III. Resident Foreign Currency (Domestic) Account (RFC(D)) [Regulation 4(C)] • To enable resident individuals to keep in a bank account the foreign exchange they could retain from the sources mentioned in terms of Regulation 3(iii) of RBI Notification No.FEMA.11(R)/ 2015-RB dated December 29, 2015, they are allowed to open a Resident Foreign currency (Domestic) Account [RFC(D)] with an AD bank in India. This facility is in addition to that provided under of RBI Notification No.FEMA.11(R)/ 2015-RB dated Decemb....
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....urrency Accounts in India [Regulation 4(G)(3)] • An AD may open non-interest bearing foreign currency account for Project Offices in India subject to the following: • The Project Office has been established in India, with the general/ specific permission of Reserve Bank, having the requisite approval from the concerned Project Sanctioning Authority, • The contract under which the project has been sanctioned, specifically provides for payment in foreign currency, • Each Project has only one Foreign Currency Account. • Debits: • Payment of project related expenditure. • Credits: • Foreign currency receipts from the Project Sanctioning Authority, and • Remittances from parent/ Group Company abroad or bilateral/ multilateral international financing agency. • The Foreign Currency account may be closed at the completion of the project. • Inter-project transfer of funds will be permitted with the prior permission of the Regional Office of the Reserve Bank under whose jurisdiction the Project Office is situated. • In case of disputes be....