TMB RFC Account

The RFC Scheme Account allows eligible residents to hold foreign currency earnings securely without compulsory conversion to Indian Rupees

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Savings and term deposit optionsunder RFC scheme

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Foreign currency balances retained without conversion

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Full repatriation flexibility asper RBI norms

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Seamless transition from NRE and FCNR accounts

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Overview

The RFC Scheme Account from Tamilnad Mercantile Bank is designed for returning NRIs and eligible resident individuals who wish to retain foreign currency funds in India

 
Product Highlights

RFC Scheme Accounts provide flexibility by allowing balances to be maintained in foreign currencies as permitted by RBI. Customers can credit eligible foreign earnings such as proceeds from NRE or FCNR deposits, pensions received from abroad, or other permitted remittances

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Features and Benefits

With an RFC Scheme Account, customers benefit from holding foreign currency balances without exposure to exchange risk. The account supports both savings and term deposit options and offers assured returns on deposits

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Eligibility

RFC Scheme Accounts can be opened by: Returning NRIs who have become residents of India, resident individuals eligible under RBI and FEMA guidelines, persons who have foreign currency earnings from permissible sources

Account Highlights

  • Facility available for NRIs who have returned/proposed to return to India on a permanent basis.
  • The account will be denominated in USD, GBP, EURO.
  • The account can be held jointly with resident relative as joint holder on ‘former or survivor’ basis. However, such resident Indian relative joint account holder cannot operate the account during the life time of the resident account holder.
  • The account can be maintained in the form of Term Deposit account.
  • The entire amount brought in by returning Indians from abroad and or balances in their FCNR / NRE accounts can be converted and credited to such accounts.
  • NRIs who propose to return to India can remit the desired amount to the Bank with the request to open the account on their return to India.
  • Pension or other monetary benefits received from abroad, arising out of employment taken up abroad prior to his returning to India, can be credited to such accounts.
  • The balance in the account can be freely used for local disbursements.
  • Repatriation of balance held in RFC account or reconversion to NRE / FCNR account is permissible if the RFC account holder later becomes non-resident.
  • Loan facility is not available.
  • There is no ceiling on amount of Deposit. However deposits are accepted in minimum lots of USD 1000, GBP 500 and EURO 500.

Premature Closure policy

  • TMB has a very clear cut and transparent policy of the charging of penal interest / charges towards the pre closure of deposits with the bank. These norms are strictly followed by the bank for every deposit made.

No Interest will be paid for :

  • No interest will be paid for the FCNR (B), FCNR Plus & RFC Deposits with are prematurely closed before completion of one year from the date of opening of the deposit/renewal.
  • For the deposits which are prematurely closed after completion of one year from the date of opening of deposit, interest will be paid at the rate of interest applicable for the period for which the deposit remained with the bank prevailing on the date of opening of the said deposit or the contracted rate of interest, whichever is less minus one hundred basis points (1%).

Exemption from Premature Renewal :

In case of FCNR (B), FCNR Plus & RFC Deposits which are extended during the tenure of the deposit for a period longer than the balance period (i.e. The remaining period of the deposit), the period of extended deposit shall be minimum of twelve months and a maximum of 5 years effective from the date of extension subject to the following condition :

  • If such premature extension is done before completion of 12 months no interest is payable on such deposits (as per RBI guidelines).
  • In all other cases, interest shall be paid at the rate applicable for period for which the deposit has actually run as prevailing on the date of opening the deposit or the contracted rate of interest whichever is less minus one hundred basis points (1%). In case of Premature Renewal, Interest shall be paid at the rate applicable for the period for which the deposit has actually run as prevailing on the date of opening the deposit or the contracted rate of interest whichever is less.

Note :

If such extended deposit is prematurely closed, the payment of interest will be as given below :

  • No interest will be paid if the deposit has not crossed the minimum period of 12 months from the date of opening of the original deposit.
  • In all other cases, interest shall be paid at the rate of interest ruling on the date of original deposit (deposit before premature renewal) for the period for which the deposit has run from the date of original deposit or the contracted rate of original deposit whichever is less minus one hundred basis points (1%).

The penal clause will be applicable for all the new deposits opened / deposits which are renewed on or after Sep 01, 2016.

 

Deposit Interest Rates

TMB has been consistently offering higher rates of interest for the past several years for the benefit of its depositors since its cost of operations is low compared to other banks. The rates are split for different segments to offer the highest rate of interest possible. Apart from the Regular Domestic Deposits, we have special rates for High Value Deposits as well as even higher interest rates for Senior Citizens of India.

Savings Bank Account

Balance up to 5 lakhs2.60% (p.a)
Balance > 5 Lakhs to 10 Lakhs3.00% (p.a)
Balance > Rs.10 lakh up to Rs.1 Crore3.25% (p.a)
Balance > Rs.1 Crore up to Rs.2 Crore4.50% (p.a)
Balance > Rs.2 Crore up to Rs.10 Crore6.00% (p.a)
Balance > Rs.10 Crore up to Rs.25 Crore5.50% (p.a)
Balance > Rs.25 Crore up to Rs.100 Crore5.00% (p.a)
Balance > Rs.100 Crore4.00% (p.a)

Terms and Conditions

  • Above Interest Rates applicable from July 01,2026.
  • Rates offered on daily closing balance in SB Account and compounded quarterly.
  • Please note that Interest Rates are subject to change without notice as per the market trends and the bank’s decision in this regard is final.

Domestic & NRO Term Deposits

RATE ON DOMESTIC TERM DEPOSITS & NRO DEPOSITS* (p.a).

DEPOSITS BELOW RS.3 CRORE

Domestic and NRO Term Deposits

W.E.F 10.04.2026

(Percentage per annum)

Period

General Public
(Below Rs.3 crore)

Senior Citizen
(Below Rs.3 crore)

Super Senior Citizen
(Below Rs.3 crore)

Callable

Non-Callable
(Above ₹ 1 Cr)#

Callable

Non-Callable
(Above ₹ 1 Cr)#

Callable

Non-Callable
(Above ₹ 1 Cr)#

7-14 days4.00-4.00-4.00-
15-29 days4.25-4.25-4.25-
30-45 days4.50-4.50-4.50-
46-60 days4.80-4.80-4.80-
61-90 days4.80-4.80-4.80-
91-120 days5.805.905.80-5.80-
121-179 days5.805.905.80-5.80-
180-270 days6.306.406.30-6.30-
271 days to less than 1 year6.506.606.50-6.50-
1 year6.806.907.30 7.40 
Above 1 year to less than 456 days6.706.807.20-7.30-
456 days (TMB 456
Special Deposit scheme) @		7.107.207.50-7.60-
Above 456 days to 566 days6.606.707.10-7.20-
567 days (TMB 567
Special Deposit scheme) @		7.257.357.70-7.75-
Above 567 days to less than 2 years6.606.707.10-7.20-
2 years to less than 3 years7.007.107.507.607.607.70
3 years to 10 years6.706.807.207.307.307.40

@ Special schemes are available for limited period only

# Non Callable Term Deposits are deposits where Premature withdrawal is not permitted.

Note:

  • Senior Citizen – aged 60 years and above
  • Super Senior Citizen – aged 80 years and above
  • Additional rate of interest payable on term deposits to Senior Citizens and Super Senior Citizens shall not apply to NRO Term Deposits
  • Additional rate of interest payable on term deposits to Senior Citizens and Super Senior Citizens shall not apply for the period less than one year
  • There is no penal interest for premature closure of bulk deposits (Rs.3 crore and above) after 7 days of opening.

Bulk Domestic /NRO/NRE Term Deposit

Rate on Bulk Deposits

(Domestic Term Deposits & NRO/NRE* Deposits) (%p.a)

With effect from 12.08.2026

PeriodCallableNon-Callable #
 3 to <5cr5 to <10cr10 to <25 cr25 to <50 cr50 to <100 cr100 cr to <250 cr250 cr & above3 to <5cr5 to <10cr10 to <25 cr25 to <50 cr50 to <100 cr100 cr to <250 cr250 cr & above
7-14 days4.054.054.054.554.804.804.80–
15-29 days4.304.304.354.804.804.804.80–
30-45 days5.305.305.305.305.305.305.30–
46-60 days5.555.555.555.555.555.555.555.805.805.805.805.805.805.80
61-90 days5.555.555.555.555.555.555.555.805.805.805.805.805.805.80
91-120 days5.805.805.805.805.805.805.806.056.056.056.056.056.056.05
121-179 days6.306.306.456.456.506.506.506.356.356.556.556.556.556.55
180-270 days6.306.306.456.456.506.506.506.356.356.556.556.556.556.55
271 days to less than 1 year6.556.556.806.806.806.806.806.606.607.057.057.057.057.05
1 year7.407.407.407.407.407.407.407.507.507.507.507.507.507.50
>1 year to 15 months7.307.307.307.307.307.307.307.407.407.907.907.957.407.40
>15 months to <2 years7.257.307.307.307.307.307.307.307.557.557.557.557.557.55
2 years to <3 years6.556.556.556.706.706.706.706.806.806.806.806.806.806.80
3 years to 10 years6.556.556.556.706.706.706.706.806.806.806.806.806.806.80

#-Non callable term deposits are deposits where PREMATURE WITHDRAWAL IS NOT PERMITTED.

Note:

  • There is no penal interest for premature closure of bulk deposits (Rs.3 crore and above) after 7 days of opening.
  • Kindly contact the nearest branch for Bulk Deposits and other terms and conditions. The above rates are subject to change without prior notice. The acceptance of bulk deposits shall be subject to the permission from Treasury department, keeping in view the liquidity position of the Bank.
  • * Minimum tenor for NRE Deposit is 1 Year.

NRE Deposits

DEPOSITS BELOW RS.3 CRORE

NRE Term Deposits

W.E.F. 10.04.2026

(Percentage per annum)

Period

Callable

Non-Callable

(Above ₹ 1 Cr)

1 year6.80-
Above 1 year to less than 456 days6.706.80
456 days (TMB 456 Special Deposit scheme) @7.107.20
Above 456 days to 566 days6.606.70
567 days (TMB 567 Special Deposit scheme) @7.257.35
Above 567 days to less than 2 years6.606.70
2 years to less than 3 years7.007.10
3 years to 10 years6.706.80

@ Special schemes are available for limited period only

# Non Callable Term Deposits are deposits where Premature withdrawal is not permitted.

Note :

  • No interest shall be paid on deposits which are pre-closed before the expiry of minimum period of one year
  • 1% penal charges will be levied for premature withdrawal of NRE Term deposits. The penal interest of 1% will be deducted from the rate prevailed on the date of opening of the deposits for the period for which the deposit has remained with us.

With effect from 7th July 2026, the rate of interest on FCNR (B) / FCNR Plus / RFC deposits will be revised as detailed below:

Special Rate of Interest for FCNR (B) deposit  (Eligible for FRESH FCNR (B) deposits and renewal of FCNR (B) deposits on MATURITY only):

Currency3 Years and above but less than 4 Years4 Years and above but less than 5 Years5 Years only
USD below 1 Lakh7.257.257.25
USD 1 Lakh & above7.257.257.25
GBP6.756.756.75
EUR3.503.503.50
  • This special rate of interest is applicable for FRESH FCNR (B) deposits and renewal of FCNR (B) deposits on MATURITY only. Any pre-mature closure / renewal of existing FCNR (B) deposits is NOT permitted.
  • The FCNR (B) deposits accepted IN USD, EUR and GBP for the period 3 years to 5 years will have a lock-in period of one year, and no premature closure will be permitted for one year from the date of deposit.

INTEREST RATE FOR FCNR (B) / FCNR Plus / RFC deposits w.e.f. 7th July 2026

 

Currency

 

1 Year but  less than 2 Years2 Years and above but less than 3 Years3 Years and above but less than 4 Years4 Years and above but less than 5 Years5 Years only
USD below 1 Lakh5.104.003.903.603.50
USD 1 Lakh & above5.504.153.903.603.50
GBP3.803.803.753.503.25
EUR2.502.252.002.001.75
CAD4.003.753.753.503.50
JPY0.500.500.500.500.50

Note :

  • Rates are subject to change without prior notice
  • No Interest is payable if the deposit is withdrawn before one year
  • For 1 year deposit, simple interest is applicable
  • For deposit above 1 year, Interest is compounded at half yearly frequency.

 

  • Any pre-closure after completion of one year will be applicable to pre-closure penalty norms.
  • No interest shall be paid on premature withdrawal of deposits upto 7 days from the date of deposit / renewal. (For deposits opened/renewed on or after 13/06/2024)
  • The interest rate for premature withdrawal will be calculated based on the applicable rate of interest for the period the deposit has remained with bank less the penal rate (1%).

As per the section 206AA of the Income Tax Act, quoting of Permanent Account Number (PAN) is mandatory, if the interest on term deposits for the financial year exceeds Rs. 50,000.00 for ordinary citizens and Rs. 1,00,000.00 for senior citizens. If PAN is not furnished, then tax has to be deducted at higher rate of 20%. Quoting of PAN in the declaration form 121 is mandatory for non-deduction of tax at source. If PAN is not quoted in the form 121, tax will be deducted at a higher rate of 20%.

Therefore, the customers are requested to furnish their PAN to the Bank and those customers who are eligible to submit Form 121 are requested to submit Form No. 121 with their Permanent Account Number (PAN) along with the photocopy of the PAN Card immediately.

Frequently Asked Questions

Find answers to the most common questions about eligibility, benefits, and
features of the TMB Royal Savings Bank Account

It is a Resident Foreign Currency account for returning NRIs.

It is a Resident Foreign Currency account for returning NRIs.
Returning NRIs who have become resident in India can open this account.

Returning NRIs who have become resident in India can open this account.
The account is maintained in designated foreign currencies.

The account is maintained in designated foreign currencies.
Eligible foreign income and funds can be credited as per regulations.

Eligible foreign income and funds can be credited as per regulations.
Repatriation is permitted subject to applicable rules.

Repatriation is permitted subject to applicable rules.
It is a Resident Foreign Currency account for returning NRIs.

It is a Resident Foreign Currency account for returning NRIs.
Returning NRIs who have become resident in India can open this account.

Returning NRIs who have become resident in India can open this account.
The account is maintained in designated foreign currencies.

The account is maintained in designated foreign currencies.
Eligible foreign income and funds can be credited as per regulations.

Eligible foreign income and funds can be credited as per regulations.
Repatriation is permitted subject to applicable rules.

Repatriation is permitted subject to applicable rules.