Setting up an RFC Fixed Deposit requires specific documentation to ensure a smooth and efficient process. By preparing the necessary documents in advance, you can quickly secure your investment and enjoy the benefits of this reliable deposit option.
Documents required to open RFC Fixed Deposit
Permanent Account Number (PAN) / Form 60 (in absence of PAN).
Copy of Visa (Expired or Valid) and immigration stamps showing evidence of foreign stay for at least 1 year (last departure and arrival page).
(Originals KYC documents need to be taken while submitting the request and branch staff will verify the same)
Yes, proof of address is mandatory for opening a Resident Foreign Currency (RFC) Fixed Deposit Account. This proof can include a recent utility bill (electricity, water, gas), a bank statement, or a government-issued document that displays your name and current address. The purpose of providing proof of address is to verify your identity and ensure that you are a resident of the country where you are opening the RFC Account. The specific requirements may vary depending on the bank and jurisdiction, so it is advisable to check with the bank for the exact documents needed.
Yes, to open a Resident Foreign Currency (RFC) Fixed Deposit, you need to provide proof of your Non-Resident Indian (NRI) status. This can include a copy of your passport showing your visa stamp, proof of residence abroad, and proof of your Indian origin (PIO)/Overseas Citizen of India (OCI) status. Additionally, you may need to provide proof of employment or business abroad. The specific documentation requirements may vary, so it's best to check with the bank to ensure you have all the necessary documents to establish your NRI status and open an RFC Fixed Deposit.
To open a Resident Foreign Currency (RFC) Fixed Deposit Account, certain documents are typically required. These include a valid passport with valid visa/work permit/employment contract, proof of foreign residence/address, and proof of Indian origin (PIO)/Overseas Citizen of India (OCI) status. Additionally, proof of employment or business abroad may be required. For Non-resident Indians (NRIs) returning to India, proof of their intention to stay in India permanently or indefinitely, such as a return ticket or employment letter, may be needed. The specific documentation requirements can vary, so it's advisable to check with the Bank for the exact list of documents needed.
Automatic Renewal
We will be happy to renew your deposit, unless we hear from you to the contrary, for the same period as the original deposit at the prevailing rates of interest. In absence of any maturity instructions, deposit will be auto renewed.
Premature encashment
In the case of premature encashment, all signatories to the deposit must sign the encashment instruction.
All premature encashments will be governed by rules of Reserve bank of India prevalent at the time of encashment.
Queries / Clarifications
Please quote the deposit account number in all communication.
Please record change of maturity instructions with us well in advance to enable us serve you better.
Tax Deduction at source (TDS) on RFC Deposit
As per section 206AA introduced by finance (No.2) Act, 2009 wef 01.4.2010, every person who receives income on which TDS is deductible shall furnish his pan, failing which TDS shall be deducted at the rate of 20% (as against 10% which is existing TDS rate, wef 14th May’2020 till 31st March’2021 @ 7.5%) in case of domestic deposits and 30% plus applicable surcharge and health and Education Cess in case of NRO deposits". Please further note that in the absence of PAN as per CBDT circular no: 03/11. TDS certificate will not be issued. In absence of PAN, Form 15G/H and other exemption certificates will be invalid even if submitted and Penal TDS rate will be applicable.
TDS rate is applicable from time to time as per the IT Act, 1961 and IT rules. The current rates applicable for TDS would be displayed on Bank’s website. Today, TDS is recovered when interest payable or reinvested on FD & RD per customer, across all Branch, exceeds Rs 40,000/- (Rs. 50,000/- for senior citizen) in a Financial Year. Further, TDS is recovered at the end of the financial year on Interest accruals if applicable.
If interest amount is insufficient to recover TDS, the same may get recovered from the principal amount of Fixed Deposit. If customer wishes to have TDS recovered from CASA, same can be availed by filling separate declaration at branch.
For renewed deposits, the new deposit amount consists of the original deposit amount plus Interest Less TDS, if any, less compounding effect on TDS. For reinvestment deposit, the interest reinvested is post TDS recovery and "hence the maturity amount for reinvestment deposits would vary to the extent of tax and compounding effect on tax for the period subsequent of deduction till maturity.
Incase of Resident but Not Ordinary Resident(RNOR) status updated with bank (by submitting applicable declaration), TDS will not be recovered for respective financial year from the date of Arrival in India.
Every person who has been allotted a Permanent Account Number (PAN) and is eligible to obtain Aadhaar number, must update their Aadhaar number to the Income tax department (PAN- Aadhaar Linkage) as per Section 139 AA of the Income Tax Act 1961 by 31st March 2022. Further non linking of PAN with Aadhaar shall make PAN “inoperative” and may attract higher TDS rate.
Insurance Cover for Deposits
The deposits in the Bank are insured with DICGC for an amount of Rs 5 lakhs (principal + interest) per depositor.
Important Notes
Interest earned on FCNR deposit is Tax free in India.
No interest will be paid if the FCNR Deposit is prematurely withdrawn before completion of 1 year from date of deposit booking/renewal. No penalty will be levied on premature closure of FCNR Deposit.
Penalty will be levied on premature closure of RFC Deposit No overdraft facility will be extended against RFC deposit.
In the event of death of one of the joint account holders, the right to the deposit proceeds does not automatically devolve on the surviving joint deposit account holder, unless there is a survivorship clause.
In case of joint fixed deposits with a survivorship clause, the Bank shall be discharged by paying the Fixed Deposit proceeds prematurely to survivor/s, on request, in the event of one or more Joint Depositor.
In case of mandate submission, any of the holders can provide the signed instruction whereby the mode of operation is either or survivor / former or survivor.
As per IT laws, if aggregate amount of the deposit/(s) held by a person with a branch either in his own name or jointly with any person on the date of repayment together with the interest at payable is equal to or exceeds Rs 20,000/- then the amount will be paid by bank draft drawn in the name of the deposit holder or by crediting the savings / current account of the deposit holder.
The interest rate applicable for premature closure of deposits (all amounts) will be lower of:
The rate of Original /contracted tenure for which the deposit has been booked OR Interest rate applicable for the tenure for which deposit has been in force with the Bank.
The interest is calculated on a half yearly basis. Interest for re-investment deposits is calculated every six months and the principal is increased to include the interest earned during the previous six months.
In case your fixed deposit is booked without nomination details, please visit the Branch/contact your relationship manager to update the same. If FD is not booked / renewed as per applicable T &C, Bank reserves the right to rebook the same with correct details.
Please visit our website / nearest branch / contact Relationship Manager for further clarification.