How do resident foreign currency accounts in India work?

Question

I live in India, and I'm considering opening a resident foreign currency account, to receive dollars from outside India.

Is the balance (in dollars, say) automatically converted to rupees when I try to:

• Transfer money to someone using IMPS, RTGS or NEFT?
• Use a debit card to pay in rupees at a shop?
• Use an ATM card to withdraw rupees at an Indian ATM?
• Write a rupee-denominated cheque?
• Have a biller withdraw rupees from my account using ECS?

In other words, can I pretend that a resident foreign currency account is a rupee account when I want to withdraw rupees? Or are there restrictions on what rupee transactions I can perform on a resident foreign currency account that don't exist on a rupee-denominated savings account?

Am I correct in understanding that a resident foreign currency account cannot have deposits made into it in rupees, say if someone wants to transfer money to me using IMPS?

Answer 1

Is the balance (in dollars, say) automatically converted to rupees when I try to:

You can't transact on this account like you do on savings account. So there is NO ATM/Debit Card/Net Banking. You have to walk-in to the Branch and withdraw in local currency or in travel cards as required.

Am I correct in understanding that a resident foreign currency account cannot have deposits made into it in rupees, say if someone wants to transfer money to me using IMPS?

Deposits are restricted. See RBI circular