Regulation 5 - Opening, holding and maintaining a Resident Foreign Currency Account - Foreign Exchange Management (Foreign Currency Accounts By A Person Resident In India) Regulations, 2000

5. Opening, holding and maintaining a Resident Foreign Currency Account :- (1) A person resident in India may open, hold and maintain with an authorised dealer in India a Foreign Currency Account, to be known as a Resident Foreign Currency (RFC) Account, out of foreign exchange - (a) received as pension or any other superannuation or other monetary benefits from his employer outside India; or (b) realised on conversion of the assets referred to in sub-section (4) of section 6 of the Act, and repatriated to India; or (c) received or acquired as gift or inheritance from a person referred to in sub-section (4) of section 6 of the Act; or (d) referred to in clause (c) of section 9 of the Act, or acquired as gift or inheritance therefrom. 1 (e) received as the proceeds of life insurance policy claims/maturity/ surrender values settled in foreign currency from an insurance company in India permitted to undertake life insurance business by the Insurance Regulatory and Development Authority. (2) The funds in a Resident Foreign Currency Account opened or held or maintained in terms of sub-regulation (1) shall be free from all restrictions regarding utilisation of foreign currency balances including any restriction on investment in any form, by whatever name called, outside India. 2 [ (3) Resident individuals are permitted to include resident close relative(s) as a joint holder(s) in their Resident Foreign Currency account on 'former or survivor' basis. However, such resident Indian close relative joint account holder shall not be eligible to operate the account during the life time of the resident account holder. Explanation : For the purpose of this sub-regulation, 'close relative' means 'relative' as defined in Section 6 of the Companies Act, 1956. ] *********** Note : 1. Has been inserted vide Notification No. 109/2004 dated 1/1/2004 2. Inserted vide Notification No. FEMA/239/2012-RB, dated 25-09-2012 , w.e.f. 15-09-2011.