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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?

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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

  • isn't it also true that the forex can only be held for 30 days from the date of deposit and one has to convert to INR within this period? – ottodidakt Oct 7 '16 at 6:33
  • @ottodidakt Yes. If you have Cash in Fx beyond USD 250; this needs to be converted into INR with 30 days. If you have some reason, say a travel planned immediately, you can hold it longer. However the RFC account works differently. You can hold the Fx as long as you desire. – Dheer Oct 7 '16 at 10:20

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