Here are some notes about permitted foreign currency accounts outside India:
- What is a permitted foreign currency account outside India?
A permitted foreign currency account (PFCA) is a bank account that is denominated in a foreign currency and is held outside India. These accounts are permitted for specific purposes, such as:- Remittance of funds: PFCAs can be used to remit funds to India.
- Investment abroad: PFCAs can be used to invest abroad.
- Business purposes: PFCAs can be used for business purposes, such as paying for imports or receiving payments for exports.
- Who can open a PFCA?
Only certain individuals and entities are permitted to open PFCAs. These include:- NRIs: Non-Resident Indians (NRIs) are permitted to open PFCAs.
- PIOs: Persons of Indian Origin (PIOs) are permitted to open PFCAs.
- Foreign companies: Foreign companies that have a business presence in India are permitted to open PFCAs.
- What are the restrictions on PFCAs?
There are some restrictions on PFCAs, such as:- The maximum balance that can be held in a PFCA is USD 250,000.
- PFCAs cannot be used to make investments in India.
- PFCAs cannot be used to pay for education or medical expenses in India.
- What are the procedures for opening a PFCA?
The procedures for opening a PFCA vary depending on the bank and the country where the account is being opened. However, in general, you will need to provide the following documents:- Proof of identity: This could be a passport, driver’s license, or other government-issued ID.
- Proof of residence: This could be a utility bill, bank statement, or other document that shows your current address.
- Proof of funds: This could be a bank statement showing that you have the required funds to open the account.
- What are the fees associated with PFCAs?
The fees associated with PFCAs vary depending on the bank and the country where the account is being opened. However, in general, you can expect to pay an annual maintenance fee and a fee for each transaction.