Resident Indians can open major foreign currency accounts, depending on the need and requirement for such accounts. Let us take a look at the various types of accounts that can be opened and the quick features of the same.
Exchange Earners Foreign Currency (EEFC) Account
Exchange earners, who receive money through exports can open such accounts. This could even be the amount of advance remittance that has been received by an exporter after he has exported goods or services. One would also need to open such an account where there is a repayment of loans that needs to be completed to foreign importers.
There are many debits that can be done through this account, including cost of goods purchased, any import duties, that may have arisen from time to time and also trade related loans.
Resident Foreign Currency (Domestic) [RFC(D)] Account
If you have travelled abroad and have unspent amount of foreign exchange acquired, you can open this account.
Also, if you receive a gift/honorarium while on visit abroad or from a non-resident who is on a visit to India, this account can be opened. Also, this account is useful if you have foreign exchange received as earnings of LIC claims or on maturity.
Essentially, this should be from Indian insurance companies from whom the individual has made claims from abroad.
The debits that are permissible into this account is essentially for any current or capital account transactions.
Resident Foreign Currency (RFC) Account
This account is very popular for NRIs, who have changed their residential status from NRI to resident Indian. It is also useful when you convert some of your foreign assets and also when you receive superannuation benefits from an overseas employer.