RFC Fixed Deposit Account FAQs

An RFC (Resident Foreign Currency) Deposit allows returning NRIs to keep and invest their overseas savings in foreign currencies without mandatory conversion to Indian Rupees. It protects against exchange rate risks and offers full repatriation.

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.

An FCNR (B) Deposit is exclusively for Non-Resident Indians (NRIs) to park foreign earnings. An RFC Deposit is for returning NRIs who have moved back to India and need to maintain foreign currency. The primary differences involve taxation, eligibility and the source of funds.

No, please visit any Branch with KYC documents to open an RFC Deposit.

Yes, you can add or update nominees for RFC Deposits. Nomination ensures quick and hassle-free settlement of funds to the nominee in case of the unfortunate event of the Deposit holder’s demise, providing peace of mind and smooth financial continuity.

• Copy of passport
• Expired visa
• Proof of having returned to India (immigration stamp / employment end letter)
• Foreign currency earning documents (if applicable)
• Indian address proof
• KYC Documents

Returning NRIs who have become residents in India can open an RFC Deposit subject to FEMA guidelines.

Yes, returning NRIs can convert existing NRE and FCNR deposits into a Resident Foreign Currency (RFC) Deposit.

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 opening of the 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 an Indian resident.

No. Renewing an RFC Deposit is free of charge. You may choose to renew the Deposit for the same tenure or alter the tenure based on your financial goals.

On premature withdrawal including partial withdrawal of 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 an RFC Deposit cannot be changed during the Deposit tenure. If you need a different tenure, the existing Deposit must be closed prematurely and rebooked, subject to applicable rules.

Yes. Partial withdrawals are allowed from 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.

• You can hold funds in designated foreign currencies
• Get protection from exchange rate fluctuations

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 of the Deposit.

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 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.

The payout consists of:

• The principal amount in the original currency
• Interest applicable for the period completed (if eligible) at the rate applicable for the reduced tenure
• Any premature withdrawal penalties are then debited from the above principal + interest

For FCNR (B) Deposits, you can avail of loans or overdrafts in Indian Rupees (INR) or, at select institutions, in foreign currency up to a certain limit of the Deposit value (e.g., up to 85% at select banks). The underlying FCNR (B) Fixed Deposit continues to earn full interest while the loan is active.

For RFC Deposits, many banks explicitly restrict any loan or overdraft facility being taken against them to ensure capital preservation. The exact availability and limits depend on the specific bank.

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 for the desired 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, depending on the origin of funds. Refunds occur in the same currency used for opening the Deposit.

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 Savings 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 proceeds are transferred to the nominee’s or legal heir’s account, in the same currency or converted to INR, depending on the resident status of the claimant.

Repatriation permitted if the account holder becomes an 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 your Deposit details through:

• Net Banking
• iMobile Pay
• Deposit advice or confirmation e-mail.

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

Immediately contact ICICI Bank Customer Care or your Relationship Manager. The Bank will take immediate 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 e-mail.

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

No, RFC Deposits cannot be transferred between banks. You must close the existing Deposit and open a new one with the desired bank.

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 an RFC Deposit.