Non-resident Indians may continue to maintain their bank accounts in foreign currency, if they so desire, even after their return to India for permanent settlement. These accounts are known as Resident Foreign Currency accounts (RFC). The main advantage of the RFC accounts is that it is maintained in foreign currency and the deposit is protected against any fluctuations in the exchange rates.
A person resident in India can open or hold an RFC account out of Foreign Exchange received:
In this regard, foreign security is defined as any security, in the form of shares, stocks, bonds, debentures or any other instrument denominated or expressed in foreign currency and includes securities expressed in foreign currency, but where redemption or any form of return such as interest or dividends is payable in Indian currency.
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