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Resident Foreign Currency (RFC) Accounts
What is the primary purpose of a Resident Foreign Currency (RFC) account?
RFC accounts allow eligible persons, mainly returning residents, to hold lawfully received or acquired foreign exchange in foreign currency form within India.
What is the defining characteristic of the source funds eligible for credit to an RFC account?
Must be foreign exchange received or acquired lawfully, not rupees.
Who is the primary target beneficiary of the RFC account facility?
The RFC facility is designed mainly for returning residents and other eligible persons who lawfully hold or receive foreign exchange and wish to keep it in India in foreign currency form.
Can RFC account balances be used for capital account transactions under FEMA?
Yes, permissible capital account transactions are allowed under FEMA.
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