The Resident Foreign Currency (RFC) account scheme in India is designed for persons who have returned to India after staying abroad. Which of the following statements correctly describes the utilization and maintenance regulations of an RFC account according to the Reserve Bank of India (RBI)?

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Banking · FEMA Regulations

Verified Solution4 OptionsUpdated: October 2026👁️1 View

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The funds can be freely used for any bona fide purpose abroad, including investments, and can be remitted outside India.

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Answer 1

Only 50 percent of the pension received from abroad can be credited to this account while the rest must be converted to INR.

Answer 2

The funds can be freely used for any bona fide purpose abroad, including investments, and can be remitted outside India.

Answer 3

The funds in the RFC account are strictly non-repatriable and must be spent within India for local expenses only.

Answer 4

The account can only be maintained in Indian Rupees once the individual resides in India for more than three years.

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