Foreign Currency Accounts by a person resident in India

In line with the Government of India’s startup initiative, it has been decided that an Indian startup, having an overseas subsidiary, may open a foreign currency account with a bank outside India for the purpose of crediting to the account the foreign exchange earnings. The balances held in such accounts, to the extent they represent exports from India, shall be repatriated to India.

In addition, payments received in foreign exchange by an Indian startup will be a permissible credit to the Exchange Earners Foreign Currency (EEFC) account maintained in India by the startup.

Any insurance/ reinsurance company registered with the Insurance Regulatory and Development Authority of India (IRDA) may open a foreign currency account with a bank outside India to carry out insurance/ reinsurance business.

Based on RBI circular dated 23/06/2016/ For further clarification please refer www.rbi.org.in ………..Poppy