Foreign Exchange/International Banking (Class Room--TKR)----98743 61176

3 Risks in FOREX

1) Transaction Risk----Exchange rate mechanism2) Translation Risk— Accounting stage (FEDAI)3) Operating Exposure---Deferred Obligations

For exporter customers, banks always offer Buying rate [in case of inflow of foreign currency]

Bank to customer---Merchant TransactionBank to bank---------Inter-bank Transaction

FEDAI quotes a rate called Notional Rate

Over bought position (O/B)---Credit balance in the Nostro Account---Long positionOver sold position (O/S)-------Debit balance in the Nostro Account---Short position

Tools of Derivative Products to hedge (mitigate) the Risk

1) Forward2) Future3) Option4) Swap

1 USD = Rs.45.20 -------Direct Quotation----Buy Low, but sell highRs.100 = USD 2.21--------Indirect Quotation----Buy high, sell low.From 01/07/1993 2 way quotes Foreign Exchange Market-----From Monday to Friday (5 days), but in Islamic Counties like Soudi Arabs, Pakistan Friday & Saturday are holidays.

In the case of, 1 USD = INR 45.10/15-------0.05 margin as cushion.

Inflows Outflows

IR (Inward Remittances) OR (Outward Remittances)Exports ImportsT T Buying Rate T T Selling RateBills Buying Rate Bills Selling Rate

Value Dates4 types of delivery (INCO Terms----International Commercial Terms)

Date Delivery Transaction Value Date Remarks18/05/10 Cash/Ready (TOD) T 18/05/10 Provided no holiday,, TOM (Tomorrow) T +1 19/05/10 or Saturday/Sunday ,, Spot T +2 20/05/10 in between.,, Forward >T +2 >20/05/10

Generally Spot rate is displayed in the Newspapers.

In case of Selling Rate, Margin is added.In case of Selling Rate, Margin is subtracted.

USD/INR = Rs.44.25/27means that banks/Money Exchangers buy/purchase US Dollar 1 as against Rs.44.25, but sells in the market i.e. we have to buy/purchase from the market at Rs.44.27 [in one market]

GBP/USD = 1.7828/38means that banks/Money Exchangers buy/purchase GBP 1 as against USD 1.7828, but sells in the market i.e. we have to buy/purchase from the market at USD 1.7838 [in another market]So, if we have to purchase GBP by INR, we need to convert by purchasing USD by 1 GBP first i.e. USD 1.7838 and thereafter INR by USD i.e. Rs.44.27.Thus, GBP/INR =Rs.44.27 x 1.7838As per FEDAI (25, 50, 75, 00) are taken into consideration. Multiplication (x)

Nostro Account----My account with you.Vostro Account----Your account with me

In case, USD/INR = 44.25/27 USD/GBP = 0.7050/70

TT Selling Rate------1 GBP = 44.27/0.7050TT Buying Rate------1 GBP = 44.25/0.7070, since 1 USD = 44.27 (Purchased) Division (/)

I USD = GBP 0.7050So, 1 GBP = 1/0.7050

JPY/INR if USD/INR = 44.25/27 JPY/INR = 105.15/25

Buying Rate = 44.25/105.25Selling Rate = 44.27/105.15

Call Option (Thumb Ball)Strike Price---Rs.45.00

Spot Rate> Strike Price = In the money i.e Rs. 45.20>Rs.45, i.e. if we want to buy USD 1000 on 30/06/2010, but enter in a Call Option today (25/05/10) 1 USD = Rs.45, but on 30/06/2010 Spot rate is Rs.45.20, we have option to buy from the dealer USD 1000 against payment of Rs.45 x 1000 =Rs.45,000 or from Spot against Rs.45.20 x 1000 = Rs. 45,200. So, exercising Call Option is more profitable than Spot. So, it is in the money.

Strike Rate> Spot Rate = Out of money.Strike Rate = Spot Rate = At the money.

Reversely, in Put Option, Spot Rate> Strike Price = Out of moneyStrike Rate> Spot Rate = In the money.Strike Rate = Spot Rate = At the money. ====== xxxxxxxxxxxxxxxxxxxxx--------------==============xxxxxxxxxxxxxxxxxxR Kumar [02/05/2010----9830530956 (10 a.m. to 6 p.m.), rnk_sa2004@yahoo.co.in]

Exchange Rate

1) Buying 2) Selling

1) Buying a) TT [1 USD=Rs. 47.50]

b) Bills [1 USD=Rs. 47.40]

2) Selling

a) TT [1 USD=Rs. 47.80]

b) Bills

[1 USD=Rs. 47.90]Nostro Account----Our Account with your bank. An Account with Indian bank maintained with the bank outside India.

If the Nostro Account is credited at the time of buying Foreign Currency, it is TT Buying, otherwise it is Bill Buying.

If I handle with any documents, Bill Selling is applicable, otherwise TT Selling.

Bills Selling is advantageous/beneficial to the banks, since documents are to be handled.TT Buying is advantageous to the customers, since Nostro Account has already been credited.

According to date of contract and date of delivery/settlement, contracts are treated to be as Cash/Ready, TOM, Spot and Forward.

If nothing is mentioned, it will be presumed that it is a Spot Contract/Rate.In Forward Contract, delivery/settlement may be a fixed date or a fixed period.In case of Traveller’s cheque, TT Buying or TT Selling is applicable.

If one rate is mentioned, it is the average of TT Buying & TT Selling rate.When the rate is more than Spot Rate, then Forward is in Premium.

When an exporter quotes a Buying Rate, he must try to quote a rate as small as possible.

Premium is always added.Discount is always subtracted.Margin in case of Selling is added.Margin in case of Buying is subtracted.

Inter-bank Rate---Rate between the banks. Merchant Rate----Rate between the exporter and importer

If the 2nd number is higher, it is in Premium i.e. 1 USD = Rs.45.50/60If the 2nd number is lower, it is in Discount i.e. 1 USD = Rs.45.60/50

Contract Date Delivery Date/Settlement Date

Quote

03/05/10 1 USD = Rs.45.50/601 m = 2/42 m = 4/5

10/07/10 3 m = 7/9

On 10/07/10, exporter’s rate will be 1 USD = Rs.45.50 + 4 Rs.45.54 [as low as possible]

On 10/07/10, importer’s rate will be 1 USD = Rs.45.60 + 9 Rs.45.54 [as high as possible]

Cross Rate (BP—11 & 19)

1 USD = Rs.50.00USD/GBP = 1.5 i.e. 1 GBP = USD 1.5So, 1 GBP = Rs.1.5 x 50 = Rs.75

USD/INR = 45.50/60 i.e. 1 USD = Rs.45.50/60GBP/USD = 1.8340/50 i.e. 1 GBP = USD 1.8340/50What is 1 GBP? Buying Rate = 1.8340 x Rs.45.50Selling Rate = 1.8340 x Rs.45.60

There are 2 parties in Option, one party having the Option is called ‘Buyer’ of the Option and the other party is ‘Writer’ of the Option.Call Option---BuyingPut Option—SellingThere are 2 Options ----European Option & American Option.

Arbitrage----Buying in one market and selling in another market.

Future is a Derivative. It is a standardized contract where there will be no Counter party risk. Regulatory body is present.Future and Option are exchange-traded contracts.

In case of Forward Contract, there is counter party risk.

There are 4 currencies in NSE/MCE [Multi-Commodity Exchange]

OTC (Over the Counter) USD/INR USD 1000 EURO EURO 1000 GBP GBP 1000 JPY JPY 10,000

SWAP

Sometimes buying and selling of some amounts of Foreign Currency for different maturities take place between CBI & PNB.

L/C & Bank GuaranteeStand-by L.C---serves the purpose of Bank Guarantee.Red Clause L/C----Pre-shipment/Packing credit to the exporter allowedGreen Clause----To seller as anticipatory credit

UCPDC 500 UCPDC—600From 1993 Started from 01/07/2007.

Articles—49 Articles—39Maximum period—7 banking days Maximum period—5 banking days

About +- 10% in quantity or amount.+- 5 days.

Bill of Entry is a proof issued by Customs Authority that physical goods enter in India.

Banks to furnish Half yearly statement after 6 months to RBI informing the names of Defaulting importers---------------BEF

Anybody intending to export must submit a Declaration Form before the Customs that the exporters will get the full realization proceeds within 12 months.

Banks inform about the Defaulting exporters to RBI in a statement called XOX in 30th June and 31st December every year.

Exporters’ Declaration Forms

GR-----Non-computerized/Obsolete/SDF---Computerized instead of GRPP---By Post/ParcelSOFTEX----Software exports

Crystallization: Conversion of Foreign Currency Liability into Indian Currency. Exports----Maximum 30 days i.e. any day within 30 days.Imports----Maximum 10 days i.e. any day within 10 days.

Factoring----Buyer’s Credit ---Purchasing of sundry debts or book debts with or without recourse.Forfaiting----Supplier’s Credit---Purchase of exports Receivable always without recourse.

ADR---Dollar denominated exchange traded in USAGDR traded in the stock exchange of Europe & USA (Luxemburg)IDR---Indian Depository Receipt denominated in Indian RupeesIt is Trade Credit where it is for >180 days, but <3 years.ECB (External Commercial Borrowing) is a credit where borrowing is for more than 3 years (>3 years) and if the payment is made outside India [Capital Account].Maximum Limit is USD 500 million.

If there is any change of asset or liability of an Indian outside India or of a foreigner in India, it is known as Capital Account transaction.

Current Account Convertibility

USD 10,000 per financial year for private visit/tour [Current Account]USD 25,000 for Business tripUSD 1,00,000 for Medical treatment without any documentary evidence, or studying abroad or employment

No specific limit for gifts and donations

Liberalized Remittance Scheme----Under this Scheme, any Resident Indian can remit USD 2,00,000 without specifying any reason for a financial year [Capital Account Convertibility].

In terms of Tarapore Committee recommendations, RBI accepts partial Capital Account Convertibility.

Buyer’s Credit & Supplier’s Credit

On execution of exports, exporter demands payment immediately. But importer wants deferred payment. In that case, buyer’s credit or supplier’s credit occurs. Banks of both ends (importer and exporter) play an important role on behalf of the importer so that imports are not disturbed and exporter can get the payment in time. Importer provides the Bank Guarantee to his (Importer’s) bank and in turn the importer’s bank provides Bank Guarantee to exporter’s bank. So, exporter’s bank’s provides loan either to buyer or to supplier. If Buyer’s account is debited, it is Supplier’s Credit (Importer). If supplier’s Account is debited, it is Buyer’s Credit (Exporter).

NRO, NRE & FCNR (B) Account

For Non Resident Indians (NRI), there are 3 Deposit Schemes namely,a) NRO ii) NRE & iii) FCNR (B)

Accounts under NRO, NRE can be opened in all/any branch of the banks and any type of account i.e. Fixed, Savings Bank, Current & Recurring can be opened by an NRI.

FCNR (B) can be opened only in some branches of the banks in 6 denominated Foreign Currencies i.e. 1) JPY 2) Euro 3) US Dollar 4) GBP 5) Aus Dollar 6) Can Dollar

Fixed Deposits can be opened under 3 Accounts/Deposit Schemes.

NRO -----Joint account with Resident Indian can be opened. It is Non-Repatriable.Under NRO, the money can be used only in India. Maximum amount of repatration for NRO is USD 1 million. TDS is applicable.

NRE & FCNR (B) can’t be opened jointly without NRI. They are Repatriable. No Income Tax or Wealth Tax is to be paid by the Account Holders. Indian Rupees can’t be deposited/credited in these Accounts.

Repatriable means money/amount can freely go to other country.

26/05/2010 ---Foreign Exchange/International Banking (Class Room--TKR)----98743 61176

FEMA 1999 was enacted and gazette on 31/05/1999 and came into force from 01/06/2000.Objective of FEMA is to manage Foreign Exchange in India with a uniform and steady growth of Foreign Exchange.

OTC (Risk Management)---covers Liquidity Risk.

BOT [Balance of Trade] is the difference of Exports & Imports.BOP [Balance of Payment] is the difference between Total Inflows & Total Outflows of exchanges. [BP—7]In BOP, if Inflows is greater than Outflows (Inflows>Outflows), Currency of that country is stronger and appreciates.BOP is an indicator of exchange rate of a country.If interest rate increases, currency appreciates for short term, but in long term depreciates. Because, FIIs start coming with huge investments, currency of a country will appreciate as a direct result. But, in long term the Indian businessmen get looser and looser resulting in currency depreciation.

When interest rate decreases, currency depreciates for long term, but in short term currency gets appreciated.

If Total Inflows>Total Outflows, it is positive BOP.-----Currency Appreciation.If Total Outflows>Total Inflows, it is negative BOP. ---Currency Depreciation.

If GDP of a country is higher, Currency will be higher.If GDP of a country is lower, Currency will be lower.

GOI declares the Fiscal policy of the country, whereas RBI, being the Central Bank of the country declares the Monetary policy time to time to regulate the financial markets.RBI declares Repo Rate, CRR, SLR, Bank Rate, Selective Credit Control to determine the Exchange rates of the markets.

Current Account of a country----P/L Account in respect of exports and importsCapital Account of a country relates to Balance sheet where Assets and Liabilities get affected due to the inflows and outflows of Foreign Currency.

Tarapore Committee headed by Tarapore erstwhile Dy. Governor of RBI recommended partial convertibility of Capital Account i.e. up-to certain limits. An Indian can easily purchase a land or building in India (Capital investment), but can’t purchase land in any Foreign country, (outflows not allowed for capital investment outside India after the limits.)Similarly, a foreigner can’t have capital investment in India beyond the limits or not allowed to withdraw currency as per their discretion.

But the many foreign countries adopt Capital Account Convertibility, as a result of which Libya, Zambia, Malaysia get affected in Economic melt-down of 2008.

I USD = INR 45.10/12Cash/Spot-----02/01 Spot/1st month-----05/06Spot/2nd month---10/11

PremiumDiscount

Ready/Cash Buying Rate (on Discount Rate) Rs.45.10 (-) 0.02 Rs.45.08 Ready/Cash Selling Rate (on Discount Rate) Rs.45.12 (-) 0.01 Rs.45.11 Inter-bank Rate

1 USD = INR 45.10/12I GBP = USD 1.2802/2830In Direct Quotes Left x Left-----------Buying Rate Right x Right-------Selling Rate

If 1 USD = GBP 0.7050/60Buying Rate = Rs.45.10/0.7060 = Rs.63.18Selling Rate = Rs.45.12/0.7050 = Rs.63.001 GBP = INR 63.18/00In Direct Quotation for Cross Currency Buying Rate = Right x Left [ X]Selling Rate = Left x Right [X]

Dealing Room [BP—18]

Front Office-------------Chief DealerMiddle/Mid Office----Independent/ALCOBack Office-------------Accounting

Over Night Limit (ON) is lower than Day Light limit (DL)

Sub-vent to financing banker--------2%

BP—22AD will crystallize (converts) the exports proceeds if outstanding from Due date on 30th day in case of exports.AD will crystallize (converts) the imports proceeds if outstanding from Due date on 10th day in case of imports, since Nostro Account has already been debited.

Derivative is a product which is derived from underlying assets.ADR & GDR are underlying assetsDerivatives are of 4 kinds namely 1) Future 2) Swaps 3) Option & 4) Forwards

(BP—26)8a) TT Buying rate for inward payment of USD 2,50,000, if Interbank rate is 46.00/02, and margin to be charged at 0.08%

TT Buying Rate------ 1 USD = INR 46.0000 (-) Margin 0.0368 [0.08%] INR 45.9632 i.e. INR 45.9625

[Customer rates of 3rd & 4th decimal places will be ended with 25,50,75,00 In case of TT Buying Rate (Exports), Margin will be deducted Pay Less, buy lower in case of imports]

So, TT Buying rate for Inward payment of USD 2,50,000 is USD 2,50,000 x INR 45.9625 = Rs.1,14,90,625

BP--13Exports-----Credit received in Nostro AccountIt is a purchase of USD from the customer for which USD will have to be sold in the market.Market buys USD at Rs.46.00 and sells at Rs.46.02. So, we have to quote Buying rate of Rs.46.00 less Margin i.e. T T Buying Rate.

Purchase Transaction/Contract----T T Buying RateSale Transaction/Contract-------T T Selling Rate

In case of cancellation of Forward Contract, Reverse treatment i.e.Purchase Transaction/Contract----T T Selling RateSale Transaction/Contract-------T T Buying Rate

8b) Bill Selling rates for import bill of USD 1,00,000, if Interbank market is 45.7650/7750, and margin to be charged at 0.20%

Bill Selling Rate------ 1 USD = INR 45.7750 (+) Margin 0.0915 [0.20%] INR 45.8665 i.e. INR 45.8675

So, Bill Selling rate for Import bill of USD 1,00,000 is USD 1,00,000 x INR 45.8675 = Rs.45,86,750[In case of Bill Selling Rate (Imports), Margin will be added*** Recover Most, sell higher in case of exports]

8c) TT Buying rates for GBP 50,000 inward payment, if USD/INR is 46.00/01 and GBP/USD is 1.7875/85. Ignore margins.

TT Buying Rate for 1GBP = INR 46.00 X 1.7875 =Rs.82.2250So, GBP 50,000 = Rs.82.2250 X 50,000 = Rs.41,11,250/-

8d) TT Selling Rate for issue of draft for JPY 1,00,000 delivery 3 rd month (full month) if USD/INR is 45.9400/9475 and USD/JPY 109.50/55. No margins. Give Rupee amount to be charged.

USD/INR = 45.9400/9475USD/JPY = 109.50/55TT Selling Rate = Rs.45.9475/109.50 i.e. Rs.0.4196For 100 JPY = Rs.0.4196 x 100 = Rs.41.9600So, JPY 1,00,000 = Rs.41.9600/100 x 1,00,000 = Rs.41,960/-

Golden Rule for Forward Contract

For a sale contract, premium for the full period up-to end date of the contract shall be closed, whereas for purchase contract, premium would be passed on only up-to the beginning of the contract period.[Exporter----purchase Forward Contract] 8e) Rate for Forward purchase booking of USD 1,00,000 delivery 3 rd month (Full month) if USD/INR Spot is 45.7850/7950 and Premium is 1 month—0.0850/0.0950, 2 months—0.1600/0.1700 and 3 months---0.2500/0.2550. Ignore Margins

1st month---27/05 to 26/06/10 (Assume)2nd month---26/06 to 25/07/10 (Assume)3rd month---25/07 to 24/08/10 (Assume) Exporter’s Purchase Contract, so T T Buying Rate is Rs.45.7850 (+) Premium (3rd month) 0.1600 Rs.45.9450

So, T T Buying Rate of USD 1,00,000 = Rs.45.9450 X 1,00,000 i.e. Rs.45,94,500/-

***** In case of Exporter, Premium will be given at the beginning of the next month [Added]. In case of Importer, Premium will be given at the end of the last month [Deducted].

2 nd Golden Rule

For cancellation of any Forward Contract (Purchase or Sale), opposite T T Rate will be applied.

8f) Forward Sale Contract USD 5,00,000 delivery 2 nd month (Full month). If Spot and Forward rates are same as given in 8e above and margin 0.15% to be charged.

In Sale Contract [Importer--Outflows], T T Selling Rate---- Rs.45.7950 (+) Premium (2nd month) 0.1700 Rs.46.9650 (+) Margin (0.15%) 0.0704 Rs.47.0354So, T T Selling Rate of USD 5,00,000 = Rs.47.0354 X 5,00,000 i.e. Rs.2,35,17,700/-

We have to collect maximum Premium and add Margin (+) from the Importer, but give minimum Premium and deduct Margin (-) from the Exporter.

8g) What rate would a Forward Purchase Contract of USD 1,00,000 due on Spot date be cancelled if interbank Spot is Rs.45.7500/7550 and exchange margin on T T Purchase is 0.08% and T T Selling is 0.15%.

It is a Purchase contract of USD/INR = Rs.45.7500/7550But, for cancellation of Forward Purchase Contract, as per 2nd Golden Rule, T T Selling Rate will be applied.So, T T Selling Rate----------------- Rs.45.7550 (+) Margin (0.15%) 0.0686 Rs.45.8236So, T T Selling Rate of USD 1,00,000 = Rs.45.8236 X 1,00,000 i.e. Rs.45,82,360/-

** Otherwise, if it would be a Sale Contract, for cancellation of Forward Sale Contract, as per 2nd Golden Rule, T T Buying Rate will be applied.So, T T Buying Rate----------------- Rs.45.7500 (-) Margin (0.08%) 0.0366 Rs.45.7134So, T T Buying Rate of USD 1,00,000 = Rs.45.7134 X 1,00,000 i.e. Rs.45,71,340/-

8h) Calculate difference to be charged/paid to the customer, in the above question, if the original contract was booked at Rs.46.00 per USD. [BP—26]

To receive Rs.46,00,000/- (1 USD =Rs.46.00)To pay Rs.45,82,360/- [for cancellation of Forward Purchase Contract]Difference to be paid to the customer Rs. 17,640/-Customer will get the benefit Rs.17,640/-, original Forward Contract was at higher rate than the purchase contract.

If the original contract was for USD/INR = Rs.45.80To receive Rs.45,82,360/- (for cancellation of Forward Purchase Contract)To pay Rs.45,80,000/- [1 USD =Rs.45.80]Difference to be charged from the customer Rs. 2,360/-Customer will have loss of Rs.17,640/-, original Forward Contract was at lower rate than the purchase contract.

Letter of Credit (LC)

How long is too long----Maximum of 5 banking days following the day of presentation to determine if a presentation is complying[Article 14]

UCPDC 500---49 Articles, 7 Banking DaysUCPDC 600---39 Articles, 5 Banking days

BP---36 Case Studies

Article 36 of UCPDC 600Force Majeur----Acts of Terrorism clause included besides Fire, Flood etc. IEC Code---10 digits, issued by DGFT, New Delhi H. O.IEC Code to be submitted by the Exporter to the Customs Authority ---one copy and RBI through AD---I copy

BP—86

FOB---Free on Board i.e. Importer to bear Insurance, freight etc

CNF/C & F/ CFR-------Cost & Freight will be borne by Exporter

CIF-----Cost, Insurance & Freight borne by Exporter

P/C (Packing Credit) is always given on FOB Value of the contract.

FBP----Foreign Bill PurchasedFUBD---Foreign Ussance Bills DiscountSight---Purchase BillsUssance----Documents

Question No—23 of TKR [BP—105]

USD 50,000 X Rs.44 = Rs.22,00,000(-) Insurance & Freight (12%) = Rs. 2,64,000 Rs.19,36,000(-) Profit Margin (10%) on 22,00,000 Rs. 2,20,000 FOB Rs.17,16,000(-) 25% Margin on FOB Rs .4,29,000Bank can allow as PCL to the exporter Rs.12,87,000

Question No-24

31/03/2005 Invoice Value USD 45,000 X Rs.43.85 CIF = Rs. 19,73,250(-) Margin on FBP 10% = Rs. 1,97,325The post shipment advance allowed to the exporter on FBP = Rs. 17,75,925

01/01/2005 PCL granted/given to the exporter i.e. Rs.12,87,000The Exporter submitted the export documents on drawn on sight basis for USD 45,000 on 31/03/2005 [Post shipment]The Exporter refunded on realization of the export proceeds on 30/04/2005

Packing Credits for January ----31 days February ----28 days March -------30 days Total ------89 days

Bank will charge interest @Rs.7% on Rs.12,87,000 for 89 days i.e. Rs.21,967

Entry Fee for 25 days 17,75,925/- x 7% for 25 days Overdue for (30-25) = 5 days @Rs.10% for Rs.17,75,925/-

Forfeiting and Factoring are financing against Receivables

Factoring is short term financing against Receivables for both domestic and export Receivables, whereas forfeiting is financing against long term export Receivables only. The forfeiter is EXIM Bank in India. Factoring is always with or without recourse and forfeiting is always without recourse

EXIM Bank will arrange a line of credit

EURO Target [ISDA, Swap & Derivatives]

Resident Indian >182 days in India in a financial year

NRI-----I T Act, 1961

NRI means a person who has gone out of India for1) Taking up of an employment2) Business3) Vocation4) Any other purpose, while his stayal outside India for an indefinite period

PIO[Person of Indian Origin] who possesses1) Indian Passport at any time2) Grand Father/Great Grandfather3) So/Grandson

In case of opening Bank Account in India, both NRI or PIO have same status

1) NRO Account---Non Resident Ordinary maintained in IndiaTDS ---30%, but in normal domestic account it is 10.2%

2) NRE----Only NRIs/PIOs can openFully repatriableS/B Interest 3.5%Time Deposits LIBOR +

3) FCNR (B) Account---NRIs & PIOs can openOnly for Time deposits----12 monthsMaximum 86 months

NRO/NRE in Rupee AccountFCNR (B) in Foreign CurrencyNRO can be opened with NRI or with Resident Indian

Resident Indian Accounts

1) RFC [Returning Indians] Minimum stay as NRI for 1 yearCurrent, Savings, Time Deposits, Interest payable

2) RFC (D) i.e. Domestic for Resident Indians---No interest payment

3) EEFC Account----Beneficiary & Exchange Earners like Exports, Professionals etc