The Reserve Bank of India has issued amendments to the Foreign Exchange Management (Deposit) Regulations, 2016, introducing an explicit permission to transfer funds between repatriable Rupee accounts for bona fide transactions and updating the framework for Special Non-Resident Rupee (SNRR) accounts. A new regulation permits transfers of funds, for all bona fide transactions, between repatriable Rupee accounts maintained under the regulations. For SNRR accounts, a person resident outside India with business interest in India may open an SNRR account with an authorised dealer in India or its branch outside India to carry out permissible current and capital account transactions with a person resident in India and any transaction with a person resident outside India. The amendments also provide that an International Financial Services Centre unit may open an SNRR account with an authorised dealer in India outside the IFSC for business-related transactions outside the IFSC, replace references to an “Indian bank” with “a bank”, and revise the SNRR account tenure to align with the tenure of the contract, period of operation, or the business of the account holder. The amendments take effect from the date of publication in the Official Gazette.
Reserve Bank of India 2025-01-14
Reserve Bank of India amends FEMA deposit rules to allow transfers between repatriable rupee accounts and broaden SNRR account operations
The Reserve Bank of India amended the Foreign Exchange Management (Deposit) Regulations, 2016, allowing fund transfers between repatriable Rupee accounts for bona fide transactions and updating the framework for Special Non-Resident Rupee (SNRR) accounts. Key changes include permitting SNRR accounts for business interests in India and aligning account tenure with contract or business duration. The amendments are effective upon publication in the Official Gazette.