This account is not suitable if you want to transfer Indian earnings abroad freely as it has USD1million limit. It also needs tax paid certificate from certified CA before repatriation. Foreign funds can also be deposited in this account. The interest earned through this account is liable to be taxed in India. The interest is subject to income tax deduction at source at 30%, plus applicable surcharge and education cess, says an article published in Money Control in November 2012. It should primarily be used for depositing/managing your earnings in India.