How to open a USD Account in South Asia (and manage payments efficiently)

While these accounts offer flexibility, there are a few hurdles:

Here’s what to expect:

Strict eligibility rules: Indian residents can only hold foreign currency accounts under specific RBI guidelines (like an EEFC or RFC account). These are usually meant for exporters or those earning in foreign currencies, not for regular domestic use.

Limited functionality: Even if you qualify, most USD accounts can’t be used for everyday business payments, online transfers, or paying overseas vendors directly. They’re designed more for holding foreign currency temporarily than for running global operations.

Conversion costs: When you eventually convert USD to INR (or vice versa), banks apply their own exchange rates and service fees, which can eat into your profit margins, especially if you’re handling small, frequent payments.

Bank-specific restrictions: Each bank has its own policies around how long you can hold foreign currency, what currencies are supported, and how much you can withdraw or transfer. This adds another layer of complexity and inconsistency.