RFC Fixed Deposit Account FAQs

An RFC (Resident Foreign Currency) Deposit is designed for returning NRIs who wish to retain and earn interest on their foreign currency earnings after moving back to India. These deposits help maintain savings in international currencies, offer liquidity during resettlement, and provide flexibility for future re-designation if you become NRI again. RFC deposits work as a convenient bridge between global and domestic financial planning.

RFC deposits typically offer tenures ranging from 1 month to 3 years, enabling returning NRIs to manage their foreign currency earnings comfortably during their transition period in India.

Yes, interest earned on an RFC deposit is taxable

Yes. Both the principal and interest on RFC deposits are fully repatriable without restrictions.

RFC deposits can be opened only by returning NRIs who have become residents of India and wish to retain foreign currency earned abroad. Eligibility is governed by FEMA guidelines.

• FCNR (B): Meant for NRIs; fully repatriable; interest tax-free; funds remain in foreign currency.
• RFC: Meant for returning NRIs; interest taxable; repatriation depends on residency status; ideal for holding foreign currency post-return.
  Both products offer foreign currency protection but cater to different residency needs.

No, please visit nearest branch with KYC documents

Yes, you can add or update nominees for RFC deposits. Nomination ensures quick and hassle-free settlement of funds to the beneficiary in case of an unforeseen event, providing peace of mind and smooth financial continuity.

Opening an RFC deposit requires:

• Passport copy
• Expired VISA
• Proof of having returned to India (immigration stamp / employment end letter)
• Foreign currency earning documents (if applicable)
• Indian address proof
• KYC documents
  These ensure your deposit is correctly classified under the Resident Foreign Currency category.

RFC deposits are exclusively for individuals who have recently returned to India and are now classified as Residents under FEMA. It allows them to retain foreign currency earnings in a compliant, interest-bearing account.

Yes. Returning NRIs may redesignate their FCNR (B) deposits as RFC deposits upon confirmation of their residency change. This helps retain foreign currency even after returning to India.

Yes. Minors can open RFC deposit through their natural guardian or court-appointed guardian.

No. ICICI Bank does not levy any charges for opening RFC deposits. Your entire contribution remains invested and begins earning interest from the date of deposit.

No. Once the deposit is booked, the applicable interest rate remains fixed for the chosen tenure.

Interest is taxable as per applicable Indian tax laws since the depositor is now a resident. Customers should also check tax applicability in their country of residence.

No. Renewing an RFC deposit is free of charge. You may choose to renew both the principal and interest or alter the tenure based on current goals.

On premature withdrawal including partial withdrawal of the RFC deposits, Interest shall be paid at the rate applicable to the amount and period for which the deposit remained with the bank, less 1% penalty.

Yes. Nomination facilities are available for RFC deposits.

Can be held jointly with a resident relative (as per FEMA guidelines) on a “former or survivor” basis. These rules ensure compliance with FEMA requirements.

No. The tenure selected at the time of opening RFC deposit cannot be changed during the deposit period. If you need a different tenure, the existing deposit must be closed prematurely and rebooked, subject to applicable rules.

No. Partial withdrawals are not allowed under RFC deposits. If you need funds prior to maturity, you must close the deposit prematurely, in which case interest may be reduced depending on the tenure completed.

RFC deposits enable returning NRIs to retain foreign currency earnings even after becoming residents of India. Key benefits include:

• Ability to hold funds in major foreign currencies
• Ideal for transition planning after returning to India
• Flexibility to repatriate funds if NRI status is regained
• Interest earnings in foreign currency
  It serves as a bridge product between international income and domestic financial needs.

Yes. RFC deposits are governed by RBI regulations, offer capital protection, and ensure fixed interest returns. They do not carry market-linked risks or currency volatility risks This makes them more secure and predictable compared to equities, mutual funds, or currency-exposed portfolios.

In an RFC deposit, both your principal and interest remain entirely in the same foreign currency. There is no conversion to INR, which fully protects your investment from rupee depreciation. This ensures stable returns irrespective of fluctuations in the currency markets.

Funds for RFC deposits are typically contributed from:

• NRE or FCNR deposits
• Remittances received after returning to India

All contributions must comply with FEMA guidelines.

Repatriation depends on your residency status at the time of closure.

No. Once booked, the currency of an RFC deposit cannot be changed mid-tenure. If you need to invest in a different currency, you must open a new deposit in your preferred currency.

Yes, premature closure is permitted for RFC deposits. On premature withdrawal including partial withdrawal of the RFC deposits, Interest shall be paid at the rate applicable to the amount and period for which the deposit remained with the bank, less 1% penalty.

On premature withdrawal of the RFC deposits, Interest shall be paid at the rate applicable to the amount and period for which the deposit remained with the bank, less 1% penalty.

The payout consists of:

• The principal amount in the original currency
• Interest applicable for the period completed (if eligible)
• Less any premature withdrawal penalties

Both FCNR (B) and RFC deposits support loans, but with some differences:

• FCNR (B): Loans can be availed in INR or foreign currency, subject to FEMA restrictions. Repatriation rules apply.
• RFC: Loans are usually offered in INR since the depositor is now a resident.
  In both cases, the FD continues to earn full interest while the loan remains active.

No. RFC deposits do not allow additional funds to be added once the deposit is created. If you wish to invest more, you can simply open a new deposit in the desired currency and tenure.

If a remittance fails or is rejected due to incorrect currency or compliance concerns, the funds are returned to the originating account through standard banking channels. If the deposit was not successfully created, no amount is deducted from your account. You may be asked to provide remittance advice or SWIFT details for reconciliation.

If a booking fails after debit, the amount is automatically credited back to the source account NRE, overseas bank account depending on the origin of funds.

Refunds occur in the same currency used during the transaction.

No. RFC deposits are maintained in a single currency throughout the tenure. To invest in another currency, you must open a separate deposit.

At maturity, the principal and interest are transferred to RFC saving accounts or resident savings accounts.

If Resident becomes NRI again, RFC deposits can be converted into NRE/FCNR deposits.

Legal heirs or nominees must submit:

• Death certificate
• KYC documents of nominee or legal heirs
• Deceased Claim form
• Will (If available)

After verification, the deposit amount is transfer to nominee or legal heir account in the same currency or converted to INR depending on the resident status of the claimant.

Repatriation permitted if the account holder becomes NRI again.

Yes. RFC deposits are covered under DICGC insurance up to ₹5 lakh per depositor per bank (after conversion to INR). This provides an added layer of safety alongside RBI’s regulatory framework.

You can verify deposit details through:

• Net Banking
• iMobile Pay
• Deposit advice or confirmation email

These platforms display the currency, tenure, rate, and maturity amount in real time.

Immediately contact ICICI Bank Customer Care or your Relationship Manager. The Bank will take urgent steps such as blocking transactions, reviewing account activity and ensuring your deposit remains protected. Monitoring transaction alerts regularly is recommended.

You can view all details including currency, balance, interest rate, maturity date and renewal instructions through:

• Net Banking
• iMobile Pay
• Deposit advice or confirmation email

Yes. You can modify nominee details at any time by submitting a nominee updation request through digital or branch channels. Changes take effect once updated in Bank records.

No, RFC deposits cannot be transferred between banks. You must close the existing deposit and open a new one with the desired bank. Repatriation or conversion rules apply depending on account type.

RFC deposit interest is taxable in India and must also be declared abroad if required under local regulations or DTAA provisions.

Maturity instructions are mandatory at time of booking of RFC FD.