When the residential status of the account holder is changed from an NRI to a resident person, then para No. 7 of Schedule 1 provides that NRE accounts should be designated as resident accounts or the funds held in these accounts may be transferred to the RFC accounts (if the account holder is eligible for maintaining RFC account) at the option of the account holder immediately upon the return of the account holder to India for taking up employment or carrying on business or vocation or for any other purpose indicating intention to stay in India for an uncertain period. Where the account holder is only on a short visit to India, the account may continue to be treated as NRE account even during his stay in India. For detailed provisions regarding RFC account by a returning NRI, reference may be made to Chapter 17 of this book.
Deposits in India by an NRI ( Non-Resident Indian)
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